The crypto exchange is accused of operating an illegal exchange and fraud.
Binance operates a Binance.US platform, much like FTX did, which it claims is separate from its main platform. However, the SEC has claimed that Binance has conducted multiple actions to escape regulatory oversight in the U.S., which Binance denied in a statement.In the lawsuit filed in a court in Columbia, the SEC named Binance founderand called Binance a "broker-dealer, exchange, and clearing agency" which lacked proper registration in the country.
Moreover, the platform claimed that it had applied controls over manipulative trading on the Binance.US platform when it was virtually nonexistent, the lawsuit alleges—the SEC singled out the practice of "wash-trading" where traders illegally buy assets from accounts they control to inflate their prices and said that there were no monitors for such activity.Investigations into Silvergate Bank, a lender in the U.S.
Reuters has previously reported that a deputy of Chen transferred $400 million to a trading firm, Merit Peak, controlled by Zhao in 2021. Binance.US claimed that Merit Peak was withdrawing its funds in this transaction. However, reports also suggest that Binance.US did not separate customer deposits from the company's funds, a requirement as per U.S. laws.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SEC’s Binance suit contains heavy mix of predictable charges, novel revelationsThe U.S. Securities and Exchange Commission (SEC) suit against Binance, Binance.US and Binance CEO Changpeng Zhao contained many details likely to attract as much attention as the charges themselves.
Read more »
SEC Sues Crypto Exchange Binance, CEO Changpeng ZhaoBREAKING: Crypto exchange binance and CEO cz_binance sued by the SEC on allegations of violating federal securities laws. nikhileshde reports.
Read more »
Breaking: SEC Unleashes Legal Fury on Binance and CZ, BNB PlungesThe U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the world's largest crypto exchange, and its CEO, Changpeng Zhao
Read more »
SEC files 13 charges against Binance and founder CZBinance “secretly allow[ed] high-value U.S. customers” to trade on the platform in violation of U.S. securities laws which bar unregistered exchanges from servicing U.S. customers, the SEC alleged in a lawsuit against the world’s largest crypto exchange.
Read more »
US SEC sues Binance, founder Zhao alleging securities law violationsThe world's largest crypto exchange Binance and its CEO and founder Changpeng Zhao were sued by the U.S. Securities and Exchange Commission on Monday for failing to restrict U.S. customers from its platform and misleading investors about its market surveillance controls, as well as for operating an unregistered securities exchange.
Read more »