Accusing Binance and CEO Changpeng Zhao and Binance of secretly controlling Binance.US, the Securities and Exchange Commission filed a complaint against Binance and Zhao on Monday.
New Lawsuit From SEC To Binance And CEO Changpeng Zhao
In addition to offering and selling unregistered securities, the SEC claims that Binance misled American regulators. It asserts that the defendants secretly controlled Binance.US, a cryptocurrency exchange established by Zhao to serve as a separate and independent crypto exchange for U.S. customers.
Moreover, SEC claimed that Binance continued to permit U.S. customers to trade on the platform despite public claims that such users were forbidden. Additionally, according to the SEC, Binance Coin and Binance USD, two tokens connected to Binance, are unregistered securities.
SEC Filed 13 Different Charges
Including unregistered offers and sales of the BNB (BNB) and BUSD currencies, the Simple Earn and BNB Vault products, and its staking program, the US regulator filed 13 allegations against Binance. The SEC also claims that Binance failed to register its Binance.com platform as an exchange or broker-dealer clearing agency in the lawsuit.
Additionally, it was alleged that Binance and BAM Trading did not register Binance.US as an exchange, broker, or clearing agency. Lastly, CZ was sued for being a controlling individual.
Defendants have enriched themselves by billions of U.S. dollars while placing investors’ assets at significant risk. Defendants have engaged in multiple unregistered offers and sales of crypto asset securities and other investment schemes.
From the lawsuit
About Binance
Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. The biggest cryptocurrency exchange in terms of trade volume was Binance as of January 2018.
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