The 3 most serious claims in the SEC lawsuit against Binance

The 3 most serious claims in the SEC lawsuit against Binance

On Monday, the US stock exchange supervisory authority Securities and Exchange Commission (SEC) raised a series of charges against Binance and thus marked one of the most important enforcement measures by the authority against the crypto industry in history.

let's take a look at the most astonishing allegations of the regulatory authority against the stock exchange and the reaction of Binance to their claims.

What did Binance do?

The 136-page acts threw Binance and Binance US "Students, broker dealer and clearing position" without prior registration.

The illegal securities offered the return regeneration programs "BNB Vault" and "Simple Earn" as well as the native token BNB of the platform and the StableCoin Busd. BNB is currently the fourth largest cryptocurrency after market capitalization and Binance holds a significant part of its overall offer.

without the supervision moving and mixed for registered stock exchanges and broker dealer typical supervision according to the second, also customer assets that regulated companies would not have been possible.

The agency said, for example, that Binance and Binance US billions of dollars of user assets from both platforms had merged into a company called "Merit Peaked Limited", which is controlled by Binance and his CEO Changpeng Zhao (CZ).

These assets were then transferred to third parties-similar to how the former FTX boss Sam Bankman-Fried had done in his now collapsed stock exchange.

In general, the lawsuit states that, despite the pretext of independence from American unity, Binance and CZ have exercised control over Binance US and the assets on its platform.

She also accused Binance of continuously operating her most valuable US customers on the international stock exchange, as the Commodities and futures trading commission claimed in March.

Finally, the SEC, a company controlled by ZHAO called "Sigma Chain" participated in the Wash trading at Binance US to increase the trading volume and the assessment of certain assets on the platform. promised, did not implement.

punishment and reaction of Binance

As a punishment for its violations, the SEC Binance wants to banish completely from the securities and crypto dealer business and pay outdoor fines for all illegally acquired profits that result from their actions, plus pre-judicial interest.

In a public reaction letter Binance did not give the investors a priority, but instead try to" judge " to win other regulatory authorities.

"All user resources on Binance and Binance partner platforms, including Binance.

Binance fulfilled last month claimed Reuters that it had mixed user funds with corporate funds and claimed that every "mixing" only served, the dollar deposits in Busd to convert.

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