The US Financial Regulatory Authority (SEC) is suing the world’s largest crypto exchange Binance and CEO Changpeng Zhao for violating US law. Many Americans write that modes Monday.
In total, the SEC has brought 13 counts.
“Organizational tug of war”
Among other things, the authority believes that Binance mixed up customer values worth several billion dollars and sent them to a European company controlled by CEO and co-founder Zhao. The authority further believes that Zhao and Binance acted in such a way as to enable wealthy clients and investors to continue trading on Binance’s unregulated international exchange.
In a blog post, Binance wrote that they were disappointed with the lawsuit. Borsen writes that it has cooperated with the SEC from the start and has worked diligently to address the regulator’s concerns. Binance denies any allegations that customer deposits on the US exchange were insecure.
“Given our scale and global recognition, Binance has become an easy target caught in a regulatory tug of war in the US,” the exchange writes.
Binance is the largest cryptocurrency exchange in the world. According to the Wall Street Journal, over 40 percent of all cryptocurrency trading took place on Binance last month. CEO Zhao is the main owner of the company.
The lawsuit caused a massive drop in the cryptocurrency market. Bitcoin is down five percent. Ethereum is down nearly five percent. Binance coin is down more than eight percent.
Deception Network
In the lawsuit, the regulator also accused the exchange of violating important provisions of US securities legislation, including acting in its own interests and manipulating the market.
“With 13 points, we believe Zhao and Binance have engaged in a wide web of deception, conflict of interest, lack of transparency, and calculated circumvention of the law,” SEC Chairman Gary Gensler says in a press release.
In the blog post, Binance wrote that it will continue to cooperate with US and global authorities, and will stand up for the platform.
At the end of March, the US Commodity Futures Trading Commission (CFTC) also filed a lawsuit against Binance. Regulators believe that Binance was operating illegally in the United States and violated regulations intended to prevent illegal financial activity. For its part, Binance said that the exchange has done everything to legally operate in the United States, including setting up its own US subsidiary.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.
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