Sigma

Read

<p class="is-style-lead">John Reed Stark, president of John Reed Stark Consulting and a former SEC Enforcement Division member, speculates on the likelihood of a criminal indictment being filed against Binance.</p>



<p>Stark cites evidence that led to a sealed indictment against Binance for fraud, obstruction of justice, and possible money laundering being filed by the U.S. Department of Justice (DOJ).</p>



<p>Stark stresses that the CFTC and SEC charges are similar to indictments alleging illegal behavior such as fraud, deceit, obstruction of justice, and even possible money laundering.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Why US DOJ Will File, Or Has Already Filed Under Seal, a Binance-Related Criminal Indictment<br><br>Having worked in the US SEC Enforcement Division for almost 20 years and managed many US SEC-DOJ joint prosecutions, IMHO, there exist a litany of indicators that US DOJ will file, or… <a href="https://t.co/VSbDKUh5EF" target="_blank">pic.twitter.com/VSbDKUh5EF</a></p>&mdash; John Reed Stark (@JohnReedStark) <a href="https://twitter.com/JohnReedStark/status/1668015011896205315?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 11, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Stark argues that the U.S. Department of Justice (DOJ) would have jurisdiction over money laundering accusations, whereas the CFTC and SEC operations are focused exclusively on civil enforcement. </p>



<p>Stark speculates that criminal charges will soon be filed against Binance by the Department of Justice (DOJ), the Securities and Exchange Commision (SEC), the Commodity Futures Trading Commision (CFTC), and other informants or whistleblowers.</p>




    <p>
        You might also like:

        <a href="https://crypto.news/binance-updates-delisting-rules-in-its-terms-of-service/">
            Binance updates delisting rules in its terms of service        </a>
    </p>




<h2 class="wp-block-heading" id="binance-s-troubles">Binance’s troubles</h2>



<p>A 76-page lawsuit was recently<a href="https://crypto.news/us-cftc-sues-binance-crypto-markets-contract-ex-ftx-boss-faces-fresh-allegations-weekly-recap/"> filed</a> by the U.S. Commodity Futures Trading Commision (CFTC) against Binance, alleging breaches of several CFTC rules and regulations by Binance CEO Changpeng Zhao and three corporations managing the Binance platform.</p>



<p>The lawsuit also claims that former Binance chief compliance officer Samuel Lim conspired to help and abet these offenses. According to the CFTC&#8217;s findings, Lim deliberately assisted specific clients in engaging in illegal actions and counseled others on how to evade compliance safeguards.</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe title="Binance: CFTC sues cryptocurrency exchange and its CEO" width="1020" height="574" src="https://www.youtube.com/embed/V9hIXNfyE1o?start=12&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p><a href="https://crypto.news/learn/beginners-guide-trading-binance/">Binance</a> has also been hit with an emergency asset freezing action brought by the U.S. Securities and Exchange Commision (SEC). </p>



<p>The 136-page lawsuit alleges that Binance Enterprises and Changpeng Zhao placed investor assets at severe risk by mixing customer cash with company funds and then surreptitiously transferring the funds to Zhao-controlled firms. </p>



<p>The SEC claims that Zhao&#8217;s company, Sigma Chain, engaged in market manipulation and that there were substantial cash transfers between firms controlled by Zhao.</p>



<p>With continuing investigations and the possibility of unsealing criminal charges by the US DOJ, the situation involving Binance is far from stable. The result of these lawsuits will have far-reaching consequences for Binance and the cryptocurrency industry as a whole.</p>




    <p>
        Read more:

        <a href="https://crypto.news/users-withdraw-over-392-million-from-binance-within-24-hours/">
            Users withdraw over $392 million from Binance within 24 hours        </a>
    </p>

Expert says US may hit Binance with criminal indictment

Table of Contents

crypto.news

Other articles published on Jun 13, 2023

Atomic Wallet Hackers Used OFAC-Sanctioned Garantex to Launder Stolen $35M: Report

Solar Q1 Recap

Polygon Teases Big Token Upgrade Amid SEC's MATIC Crackdown

Binance Remains Bullish Amidst SEC Scrutiny: Netflows Surpass $521M

Tether Converts 750M USDT From Tron to Ethereum

Markets Rally as LINA Shows Massive Growth

Join our free newsletter for daily crypto updates!