[ccpw id="5"]

HomeCrypto WhalesSEC’s lawsuit against Binance and CEO Zhao was a matter of ‘when,...

SEC’s lawsuit against Binance and CEO Zhao was a matter of ‘when, not if,’ industry players say

-

The SEC hit Binance, the world’s largest crypto exchange, and its CEO Changepng Zhao with 13 charges in a suit on Monday, including allegations of lying to regulators about its operations.

Much of the SEC’s suit deals with how Binance and its Binance.US subsidiary operated, with the latter falling under the umbrella of BAM Trading. It also touches on securities violations, including details on several crypto tokens that it considers to be securities, and how the Binance team worked to evade U.S. securities law and regulatory oversight.

Binance and BAM Trading were under Zhao’s leadership and control and operated without registering with the SEC, the agency alleges. “Zhao and Binance created BAM Management and BAM Trading in the United States and claimed publicly that these entities independently controlled the operation of the Binance.US platform.”

However, behind the scenes, according to the suit, Zhao and Binance were allegedly “intimately involved” in directing the trading entity’s business operations and providing crypto-related services to the Binance.US platform, which claims it’s an independent exchange.

The charges also included misleading investors about Binance’s systems to detect and control manipulative trading; regulators say that the exchange didn’t take proper steps to restrict U.S.-based investors from accessing its platform. The SEC also alleges that cryptocurrency BNB and stablecoin BUSD are securities.

“The new complaint from the SEC against Binance is a laundry list of charges, laying out exactly the same claims that many in Bitcoin and crypto have made against Changpeng Zhao and his companies for many years,” Cory Klippsten, CEO of Swan Bitcoin, told TechCrunch+. “These practices of Binance have essentially been open secrets, so no one who operates in the space will be surprised by any of the charges.”

SEC’s lawsuit against Binance and CEO Zhao was a matter of ‘when, not if,’ industry players say by Jacquelyn Melinek originally published on TechCrunch

LATEST POSTS

Wemade launches Drops NFT auction service on WEMIX PLAY 

Game NFTs and special NFTs will be available through English Auction on Drops  NFT auctions for new games Melting Earth, Ballies and Yield KingZ, will be...

Wemade welcomes two new US game developers to join top global blockchain gaming platform WEMIX PLAY

WEMIX PLAY to onboard Ballies, the innovative NFT project that combines sports, gaming & NFTs and immersive blockchain soccer management game, El Jefe Futbol Trading of...

Dubai to Witness World’s Largest Web3 Conference: ABC Conclave to Unite Global Web3 Pioneers in Dubai World Trade Centre

ABC Conclave, is set to gather blockchain enthusiasts, industry leaders, and innovators from around the globe on 7-8 October 2023 at the prestigious Dubai World...

Crypto Expo Dubai 2023 Unveils Premier Sponsors and Stellar Speaker Lineup

The much-awaited Crypto Expo Dubai 2023 is set to elevate the crypto landscape to new heights with an exciting array of sponsors and a lineup...

Follow us

0FansLike
3,875FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img