According to the latest reports, it seems that the SEC just sued Binance and CZ for breaking securities law. Check out the latest reports below.
SEC sues Binance
Here’s an interesting tweet that sheds more light on the matter:
The SEC and Binance news today is extremely bullish for Bitcoin 🚀
btc price dropping is a perfect example of why 95% of traders lose money…
the SEC confirmed that Solana, Cardano and 99% of other cryptos are securities
which means when exchanges like Coinbase are forced to… pic.twitter.com/Ir4ktK1D0s
— Crypto Tea (@CryptoTea_) June 6, 2023
Binance, the world’s largest cryptocurrency exchange, and its CEO have been sued by the U.S. Securities and Exchange Commission (SEC) for multiple violations of securities laws and other alleged offenses.
A complaint has been filed by the SEC in the United States District Court for the District of Columbia, alleging that Binance and its CEO Changpeng Zhao have violated laws regarding investor protection and put customers at risk.
According to the regulator, the accused parties have generated billions of dollars without adhering to their legal responsibilities.
The SEC has accused Binance.US, which comprises BAM Trading and BAM Management, of engaging in manipulative trading and failing to maintain sufficient surveillance on their platform.
“And Defendants BAM Trading and BAM Management defrauded equity, retail, and institutional investors about purported surveillance and controls over manipulative trading on the Binance.US Platform, which were in fact virtually non-existent.”
The SEC has accused Binance and Zhao of exploiting ambiguous regulations to mix customer funds, sometimes with the involvement of Merit Peak Limited, a company allegedly under the personal control of Changpeng Zhao.
“Lacking regulatory oversight, Defendants were free to and did transfer investors’ crypto and fiat assets as Defendants pleased, at times commingling and diverting them in ways that properly registered brokers, dealers, exchanges, and clearing agencies would not have been able to do.”
The same notes revealed the following:
“For example, through accounts owned and controlled by Zhao and Binance, billions of U.S. dollars of customer funds from both Binance Platforms were commingled in an account held by a Zhao- controlled entity (called Merit Peak Limited), which funds were subsequently transferred to a third party apparently in connection with the purchase and sale of crypto assets.”
