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The world’s largest cryptocurrency exchange, Binance, and its former CEO and founder, Changpeng Zhao (CZ), are once again facing trouble after his resignation from the CEO position. This news has garnered widespread attention, as the Securities and Exchange Commission (SEC) alleges that Binance and CZ engaged in fraud similar to that of FTX and its founder, Samuel Benjamin Bankman-Fried (SBF). SEC alleges FTX-style fraud by Binance, CZ 
Approximately a <a href="https://news.todayq.com/cz-resigns-as-binance-ceo-in-4-billion-settlement-with-u-s-doj/">week after CZ’s resignation</a>, the SEC claimed that Binance and CZ committed fraud in the style of FTX with U.S. investors. Despite lacking definite evidence to support their allegations, the SEC is actively seeking proof to establish guilt for both CZ and his company, Binance. 
In addition, the SEC also claims that Binance and CZ may have a backdoor to control assets stored on the Binance.US platform, similar to what SBF did with Alameda Research, according to a recent report by the Wall Street Journal. 
For those unfamiliar with the recent events, over the past five to six months, Binance has been involved in a legal battle with the <a href="https://news.todayq.com/after-cftc-sec-charges-binance-for-violating-laws-claims-12-stablecoins-as-securities/">SEC over allegations of offering illegal securities</a> and operating exchanges. On November 21, 2023, CZ was found guilty and subsequently stepped down from his CEO position. Additionally, Binance reached a substantial $4 billion settlement with the Department of Justice (DOJ) and the Commodities Futures Trading Commission (CFTC). 
Following the serious allegations against Binance and CZ, members of the Binance community defended the exchange, asserting that it did not harm retail investors as FTX did in the past. DoJ rejects CZ’s travel plans to UAE&nbsp; 
However, in the past week, the <a href="https://news.todayq.com/us-gov-flags-concern-over-czs-uae-escape/">Department of Justice (DoJ) rejected CZ’s plan to leave the U.S.</a> and visit the UAE before sentencing, as requested by U.S. prosecutors. They argued that there is a risk, as CZ owns significant assets and maintains a strong relationship with the UAE government, creating challenges in extradition, similar to the case of <a href="https://news.todayq.com/do-kwon-extradition-from-montenegro-approved-to-be-jailed-us/">Do Kwon</a> (Founder of Terraform Labs). 
It is also evident that the ongoing troubles with Binance, the largest cryptocurrency exchange, have impacted the overall cryptocurrency market. Over the past seven days, the top 10 cryptocurrencies have exhibited a downside movement, including prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Tron (TRX), and others. 
© Todayq News

Was CZ, Binance committing FTX style fraud? US SEC alleges this

Todayq News

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