{"id":19071,"date":"2023-06-05T19:28:17","date_gmt":"2023-06-05T19:28:17","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/sec-charges-binance-with-13-counts-of-securities-laws-violations\/"},"modified":"2023-06-05T19:28:17","modified_gmt":"2023-06-05T19:28:17","slug":"sec-charges-binance-with-13-counts-of-securities-laws-violations","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/sec-charges-binance-with-13-counts-of-securities-laws-violations\/","title":{"rendered":"SEC Charges Binance With 13 Counts of Securities Laws Violations"},"content":{"rendered":"
In a major development, the U.S. Securities and Exchange Commission (SEC) has lodged a comprehensive lawsuit against Binance, the world\u2019s largest cryptocurrency exchange. The lawsuit, which details 13 separate charges, was filed in federal court on Monday, June 5, and accuses Binance of mismanagement of customer funds and deception towards regulators and investors about its operations.<\/p>\n
\u201cThrough thirteen 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,\u201d SEC Chair Gary Gensler said. <\/p>\n
\u201cAs alleged, Zhao and Binance misled investors about their risk controls and corrupted trading volumes while actively concealing who was operating the platform, the manipulative trading of its affiliated market maker, and even where and with whom investor funds and crypto assets were custodied.\u201d<\/p>\n
According to the SEC, Binance has been accused of intermingling customer funds amounting to billions of dollars and covertly transferring them to a distinct company, Merit Peak Limited. This company is reportedly under the control of Binance\u2019s founder, Changpeng Zhao<\/a>, who is widely known in the cryptocurrency world as \u201cC.Z.\u201d<\/p>\n The charges against Binance extend to allegations of misleading investors about the robustness of its systems designed to identify and curb manipulative trading. The SEC further asserts that Binance failed to implement adequate measures to prevent U.S. investors from accessing its unregulated exchange.<\/p>\n The legal complaint also states that the SEC has identified several individual tokens which it believes to be securities, which include<\/a> BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, ALGO, COTI, SAND (The Sandbox), MANA (Decentraland), AXS (Axie Infinity). <\/p>\n Taking to Twitter to address the allegations, Zhao indicated that he had not yet received the complaint and that the company would respond once it does. Initially, their team said that they were \u201cstanding by, ensuring systems are stable, including withdrawals and deposits.\u201d<\/p>\n 4.<\/p>\n Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. <\/p>\n We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.<\/p>\n \ud83d\ude4f<\/p>\n \u2014 CZ \ud83d\udd36 Binance (@cz_binance) June 5, 2023<\/a><\/p><\/blockquote>\nBinance responds<\/h2>\n
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