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SEC strikes Binance

SEC strikes Binance.

On June 5, Binance Holdings Ltd. and CEO Changpeng Zhao were accused by the US Securities and Exchange Commission (SEC) of illicit use of client funds, misleading investors and regulators, and breaking securities rules. 

According to SEC Chair Gary Gensler, Binance and Zhao were implicated in deception, conflicts of interest, and evasion of the law.

In response to these allegations, Binance stated its intention to actively defend its position, emphasizing that its status as a non-US exchange limits the SEC’s actions. Binance also claimed that it tried to negotiate with the SEC for a peaceful settlement, but the commission preferred unilateral actions. The exchange intends to confront the SEC in conjunction with other participants in the US digital asset market.

The SEC has filed a motion in federal court in Washington to freeze the assets of Binance.US. Only American Binance companies — Sigma Chain and Merit Peak, accused of mingling client funds with Binance’s funds, came under the order. 

“User assets remain safe and secure and the platform continues to be fully operational with deposits and withdrawals functioning as normal,” Binance tweeted.

What will the SEC lawsuit against Binance end with? We continue to follow the developments around one of the largest cryptocurrency exchanges, Binance.

Read more at the link: https://www.reuters.com/legal/us-sec-sues-binance-founder-zhao-alleging-securities-law-violations-2023-06-05/