Sigma

In its newest scare tactic, the SEC alleged Binance.US inflated its trading volumes through a practice known as “wash trading.” 
The US Securities and Exchange Commission (SEC) has repeatedly increased the regulatory pressure against Binance.US. Binance has become the subject of the US’s efforts to eliminate crypto exchanges it deems to have acted improperly. SEC: Binance.US Engaged in “Wash Trading” 
US regulatory action this time comes as the SEC accused Binance’s US arm, Binance.US, of inflating its trading volumes – a practice known as “wash trading.” The Wall Street Journal (WSJ) first reported the news and said some of the exchange’s crypto trading was a “mirage”, according to SEC. 
Most accusations levelled against the exchange and its CEO, Changpeng ‘CZ’ Zhao, came after the SEC sued Binance, Binance.US, and CZ. In its claims against the exchange, the SEC alleged that trading volumes on Binance.US were inflated by a firm owned by Zhao. 
The WSJ report says the securities agency alleges that Binance.US inflated trading volumes “by using dozens of user accounts held by Sigma Chain, a Swiss trading company controlled by Zhao.” The WSJ also cites an academic report and boldly claims that over 70% of trading volume on crypto exchanges is derived from wash trading. 
Binance.US filed a lawsuit against the SEC for its claims of improper handling of customer funds and said the SEC were “misleading: the public in its ongoing cases. The SEC accused Binance and CZ of commingling customer assets in a press release. 
“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets.” 
&nbsp;A spokesperson addressed the SEC’s allegations of wash trading, saying they are “entirely unfounded.” The WSJ further reports the spokesperson said the claims are “based on a fundamental misunderstanding of the facts and a misapplication of the relevant law.” Binance.US Feels the Pressure 
The exchange naturally has felt the effects of the SEC’s endless lawsuits and allegations. &nbsp; 
Recent reports indicated Binance’s US affiliate laid off some of its staff following the agency’s actions. Binance Seeks Dismissal of CFTC Complaint 
In a July 24 report, news agency Reuters said that Binance and its CEO are “planning to seek dismissal of a Commodity Futures Trading Commission (CFTC) complaint accusing the crypto exchange of violating the Commodity Exchange Act and certain related federal regulations.” 
Binance has until July 27 to submit its response to the CFTC’s complaint and will reportedly seek a dismissal. In March, the CFTC revealed it was suing Binance and its CEO, accusing the exchange of trading on its own platform and CZ of indulging in insider trading. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

SEC Accuses Binance.US of Inflating Trading Volumes

Crypto Daily™

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