He also tweeted the number 4, his own shorthand for “Ignore FUD, fake news, attacks, etc.” (FUD stands for “fear, uncertainty, doubt” in crypto circles.)īinance has long argued that it isn’t subject to US laws because it doesn’t have a physical headquarters in America. In a tweet Monday, Zhao said his team was “standing by, ensuring systems are stable, including withdrawals, and deposits.” “Because of our size and global name recognition, Binance has found itself an easy target caught in the middle of a US regulatory tug-of-war.”īitcoin, the world’s most popular crypto asset and a bellwether for the broader digital asset industry, fell 6% Monday to $25,615. “We respectfully disagree with the SEC’s allegations that Binance operated as an unregistered securities exchange or illegally offered and sold securities,” the company said in a statement. Ī spokesperson for Binance said the company takes the SEC’s allegations seriously, but it believes the agency’s accusations are “unjustified.” “Binance’s CCO bluntly admitted to another Binance compliance officer in December 2018, ‘we are operating as a fking unlicensed securities exchange in the USA bro,’ ” the complaint reads, referring to the company’s chief compliance officer. The complaint further alleges that Zhao and Binance knew they were violating US laws. The SEC also alleges that Zhao and Binance commingled customer assets and even diverted some to an entity controlled by Zhao. “Through 13 charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler in a statement Monday. It also named Binance’s CEO Changpeng Zhao, known as CZ, as a defendant. The Securities and Exchange Commission, Wall Street’s primary regulator, alleges the company acted in “blatant disregard” of US securities laws. A previous version misstated the agency's name.Federal regulators have sued Binance, the world’s largest crypto exchange, accusing the company of running an illegal exchange in the United States and commingling billions of dollars’ worth of customer funds. Zhao and Binance's two entities have strongly disputed the allegations.Ĭorrection: This story has been updated to reflect that the Securities and Exchange Commission brought the charges against Binance and Zhao. The allegations of commingling and compliance failings echo the charges leveled against FTX founder Sam Bankman-Fried and his collapsed exchange. The Commodity Futures Trading Commission had already unveiled a similar set of charges against the crypto exchange earlier this year. investors to use Binance's international exchange, rather than the supposedly firewalled U.S. The agency also alleged that the exchange subverted its own controls to allow institutional U.S. The SEC alleged that Binance had been engaging in the unregistered offer and sale of securities, and that Zhao and his entities had improperly commingled investor funds with Binance's funds. Inflows totaled only $871.8 million and $11.53 million to Binance and Binance.US, respectively. arm on the Ethereum blockchain after the charges were unveiled. Investors withdrew $1.65 billion worth of assets from Binance and $13 million from contested Binance's U.S. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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