Former SEC official: US authorities will initiate or have already initiated a criminal case against Binance

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Former Commission officialThe Securities and Exchange Commission (SEC) believes that there is a possibility that the US Department of Justice (DoJ) will bring criminal charges against the management of the Binance cryptocurrency exchange.

“There are many indicators that DOJ will or has filed criminal charges related to Binance,” John Reed Stark tweeted.

Stark emphasized:The SEC and the Commodity Futures Trading Commission (CFTC) have put forward significant demands against Binance, which, in its opinion, already resemble criminal charges. These claims are intertwined with charges related to fraud, consumer deception, obstruction of justice and money laundering.

The claims go beyond money laundering,including concealment of financial assets. According to the ex-official, this sets the stage for criminal prosecution of Binance by the Department of Justice.

Given the gravity of the situation, Starksuggested the SEC could cooperate with criminal prosecutors and FBI agents. A former regulatory official drew parallels between Binance and the now bankrupt crypto exchange FTX.

Previously, John Reed Stark wrote that owners of cryptocurrency assets should abandon their investments because the storm in the US crypto industry is just beginning.

Following a list of 13 complaints against Binance and its CEO Changpeng Zhao from the SEC, the US division of the exchange has already delisted ten trading pairs. 

The SEC also filed a lawsuit against the Americancrypto exchange Coinbase. According to the lawsuit, Coinbase has been operating in the country since 2019 as an unregistered broker and trading cryptocurrencies, which are securities.  

American cryptocurrency divisionExchange Binance hired a lawyer who worked for the US Securities and Exchange Commission (SEC) from 2009 to 2014. To work on the regulator's claim, George Canellos led a team of lawyers specializing in litigation and arbitration cases. He previously served for four and a half years as Director of the SEC's Division of Enforcement, overseeing major cases.