March 29, 2024

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 CEOBinance Director Changpeng Zhao (CZ) in the District Court for 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.

Based on thirteen charges, we allege,that Zhao's and Binance's organizations engaged in an extensive web of deception, conflicts of interest, failure to disclose information, and deliberate evasion of the law. The public should be wary 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 give an answer as soon as we see the document.The media gets information before we do.

SEC sues Binance for dealing in unregistered securities

The US regulator brought 13 chargesagainst Binance, including unregistered securities offerings and sales of BNB and BUSD tokens, Simple Earn and BNB Vault products, and a staking program. Additionally, the SEC alleges that Binance failed to register its Binance.com platform as an exchange or broker-dealer clearing agency. CZ was sued as a “director”.

The SEC demands a ban on further activities of Binance and CZ, seizure of ill-gotten gains, interest and financial penalties.

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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