September 21, 2023

SEC sues Binance for dealing in unregistered securities

On June 5, the US Securities and Exchange Commission (SEC) filed a lawsuit against the American platform and the general Binance Director Changpeng Zhao (CZ) to the District Court of the District of Columbia.

The regulator alleges that the firm violated investor protection rules by operating unregistered exchanges, misrepresenting trade control rules and selling unregistered securities.

On the basis of thirteen charges, we affirmthat the Zhao and Binance organizations engaged in an extensive network of deceit, conflicts of interest, non-disclosure, and willful evasion of the law. The public should beware of investing any hard-earned assets in these illegal platforms.

In a tweet banned in Russia, Zhao said his team would look into the complaint.

Our team is always ready to ensure the stability of the systems, including withdrawals and deposits.

We will respond as soon as we see the document. Haven't seen anything yet. The media get information before us.

SEC sues Binance for dealing in unregistered securities

The US regulator brought 13 charges againstBinance, including unregistered securities offerings and sales of BNB and BUSD tokens, Simple Earn and BNB Vault products, and a staking program. In addition, the SEC alleges that Binance failed to register its platform as an exchange or broker-dealer clearing agency. CZ was sued as a "manager".

The SEC requires a ban on the further activities of Binance and CZ, the seizure of income obtained by dishonest means, with interest and financial sanctions.

The lawsuit alleged that the tokens traded on the Binance exchange are securities. These include: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.

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