The SEC has sued the world’s largest cryptocurrency company. US regulator against Binance. According to a statement from the Securities and Exchange Commission, charges against its CEO and founder Changpeng Zhao and 13 other high-ranking officials have been charged with “diverting billions at will”.
A complex and deep case of 136 pages. The lawsuit document is a text that contains a lot of information and data about Binance and its complex functioning. There are multiple charges of breaking the law throughout the case. A situation that some analysts are familiar with already guess He said he could go beyond the SEC to the Department of Justice for serious allegations.
Unlicensed because they didn’t want to. It is the first point of demand and representative of everything else. The SEC accuses Binance of operating without a license and entering up to $11.6 billion. According to the SEC, Binance is an informality that the US will deliberately do for “years”.
The decision to “deliberately” break the law is one of the positions of the US regulator. In the words of Gary Gensler: “Zhao and thirteen Binance were involved in an extensive web of deception, conflicts of interest, non-disclosure, and calculated avoidance of the law.”
fake accounts The SEC attack on Binance is quite direct and accuses them of changing their accounts. The SEC defines it this way: “They misled investors about risk controls and corrupt trading volumes while actively hiding who operates the platform.”
Using other people’s money for their own operations. Another accusation is that the safety of billions of dollars of US investor capital has been put at risk, leaving it at the mercy of Binance and Zhao.
The SEC accuses Binance CEO of exploiting client money for its own operations. A case similar to that of FTX and one where the SEC provided evidence that such practices were carried out between 2019 and 2022.
An attack that goes beyond Binance. It didn’t take long for Changpeng Zhao, who was very active on Twitter, to get to this point. express your opinion. Solana considers this case an “attack on the entire industry” as it also targets cryptocurrencies like Cardano or Matic because they see them as unregistered financial assets.
Binance is resisting. They released their official statement from Binance stating that this request comes after “extensive cooperation and good-faith final negotiations”.
The major cryptocurrency company explains that “as the industry matures, so do our systems, controls and technology,” and they will also defend their business before the US regulator and cooperate with any legislator in the world.
Image | Web Summit
on Xataka | If the crypto industry has any future, it’s not in the United States. And Coinbase knows this all too well
Source: Xataka
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.