The feds accuse crypto giant Binance of operating illegally in the US.
Binance and its founder are accused of operating an illegal exchange and defrauding investors, among other things.a reporter who writes about tech, money, and human behavior. She joined The Verge in 2014 as science editor. Previously, she was a reporter at Bloomberg.Binance, the world’s largest crypto exchange, operated illegally in the US, the US Securities and Exchange Commission“Defendants have enriched themselves by billions of U.S.
In the suit, the SEC says that Binance acted as a broker-dealer, exchange, and clearing agency without properly registering. And the BUSD token, a stablecoin issued by Paxos, as well as Binance’s BNB token, were singled out by the agency as securities that lawfully should have been registered with the agency. The overarching goal was avoiding regulatory oversight, the SEC alleges.
Binance has long claimed that Binance.US operated separately from the main exchange. While publicly claiming that Binance itself didn’t serve people in the US, Zhao and others at Binance directed valuable investors to bypass the controls meant to keep them from using the platform, the SEC alleges. The suit also claims that while Binance told investors it was implementing controls on market manipulation, it didn’t actually do that. “Thus, Defendants failed to satisfy basic requirements of registered exchanges—to have rules designed to prevent fraudulent and manipulative acts and the capacity to carry out that purpose,” the suit says.
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