SEC accuses Binance of violating securities laws

SEC accuses Binance of violating securities laws

2023-06-05 18:34:36

The US Securities and Exchange Commission (SEC) has accused crypto exchange Binance Holdings Ltd. and its founder Zhao Changpeng in violation of the securities law. About it reported in the press service of the commission.

The SEC filed a lawsuit in the District Court of Colombia. The SEC is filing 13 charges in total. The commission alleges that the exchange and its founder “misled investors about their risk controls,” manipulated trading volumes, and knowingly attempted to circumvent U.S. laws. The report also states that Binance, by not registering as an exchange or broker, created excessive risks for investors, and Changpeng is liable as a controlling person.

Changpeng tweeted on June 5 that he had not yet seen the SEC statement. “We will respond as soon as we see the complaint,” Zhao said.

On March 27, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and Changpeng with a 74-page allegation including facilitating illegal activities and trading manipulation. The CFTC argued that Binance had been systematically violating crypto derivatives trading regulations since at least 2019 and willfully evaded compliance with U.S. law, while its compliance efforts were “bogus.” After that, investors withdrew cryptocurrency in the amount of $1.6 billion.

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