Binance Holdings and its former CEO Changpeng Zhao are facing legal action from the U.S. Securities and Exchange Commission (SEC). The SEC has filed a motion to include Binance’s admission of guilt to the Department of Justice (DOJ) in its ongoing case against the company.

In response, Binance has argued that the SEC’s attempt to include the $4.3 billion guilty plea and settlement agreement with the DOJ is procedurally incorrect and should not be allowed.

The legal case between Binance and the SEC began in June 2023 when the agency accused the company of multiple securities law violations, including mismanagement of customer assets and improper use of customer funds.

In November, Binance and its former CEO reached a separate settlement with the DOJ, requiring the company to pay $4 billion in penalties and comply with U.S. regulations. However, the SEC believes that the statements and acknowledgments made in this settlement should be considered in its own case against Binance.

Binance argues that the SEC’s notice does not substantiate the claims made in the lawsuit and that presenting a judicial notice is not a substitute for amending a complaint. The company also suggests that the SEC’s attempt to leverage resolutions with other agencies indicates a lack of understanding of relevant regulatory authority.

The outcome of this legal battle between Binance and the SEC will have significant implications for the regulation of the cryptocurrency industry in the United States.