Sigma

BUSD

Impact

<p><strong>The SEC continues harassing crypto companies in the US seeking to eradicate the industry in the country.</strong></p>
<h2 style="text-align: center;" id="lawsuit-against-binance">Lawsuit Against Binance</h2>
<p>The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the world&#8217;s largest cryptocurrency exchange, and its CEO, Changpeng Zhao. The SEC alleges that Binance lied to regulators and mishandled billions of dollars, putting investors&#8217; assets at risk.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">UPDATE: &#8220;Any allegations that user assets on the <a href="https://twitter.com/BinanceUS?ref_src=twsrc%5Etfw">@BinanceUS</a> platform have ever been at risk are simply wrong&#8221;. &#8220;We intend to defend our platform vigorously.&#8221;<br />
&#8211; <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@binance</a>, in response to the U.S SEC compliant.</p>
<p>— BSC News (@BSCNews) <a href="https://twitter.com/BSCNews/status/1665772917181784071?ref_src=twsrc%5Etfw">June 5, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="mixing-customer-funds">Mixing Customer Funds</h2>
<p>The SEC claims that Binance mixed &#8220;billions of dollars&#8221; in customer funds and secretly transferred them to a separate company controlled by Zhao. The watchdog accuses Binance of knowingly evading regulations and endangering customers and investors.</p>
<h2 style="text-align: center;" id="enriching-themselves">Enriching Themselves</h2>
<p>The SEC&#8217;s complaint states that Binance and Zhao enriched themselves by billions of dollars while jeopardizing investors&#8217; assets. From June 2018 to July 2021, Binance reportedly earned over $11.6 billion in revenue, primarily from transaction fees.</p>
<h2 style="text-align: center;" id="false-claims">False Claims</h2>
<p>Among the <a href="https://www.binance.com/en/blog/ecosystem/sec-complaint-aims-to-unilaterally-define-crypto-market-structure-8707489117122437402" target="_blank" rel="noopener">allegations</a>, the SEC contends that Binance and Zhao publicly stated that US customers were restricted from trading on Binance.com. However, the SEC claims that Binance secretly allowed high-value US customers to continue trading on the platform, subverting their own controls.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">UPDATE: &#8220;Any allegations that user assets on the <a href="https://twitter.com/BinanceUS?ref_src=twsrc%5Etfw">@BinanceUS</a> platform have ever been at risk are simply wrong&#8221;. &#8220;We intend to defend our platform vigorously.&#8221;<br />
&#8211; <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@binance</a>, in response to the U.S SEC compliant.</p>
<p>— BSC News (@BSCNews) <a href="https://twitter.com/BSCNews/status/1665772917181784071?ref_src=twsrc%5Etfw">June 5, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="civil-charges">Civil Charges</h2>
<p>The SEC has filed 13 civil charges against Zhao, Binance Holdings, and two other Binance-related entities. Binance and one of its entities, BAM Trading Services, operated the Binance.US platform created for US customers after Binance exited the US market in 2019. The SEC alleges that Zhao and Binance controlled the operations of Binance.US behind the scenes.</p>
<h2 style="text-align: center;" id="diverting-assets">Diverting Assets</h2>
<p>According to the SEC, Zhao and Binance had the ability to divert customer assets as they pleased, including to a company controlled by Zhao called Sigma Chain. The regulator also claims that Sigma engaged in manipulative trading, artificially inflating trading volume on Binance.US.</p>
<h2 style="text-align: center;" id="unregistered-securities-exchanges">Unregistered Securities Exchanges</h2>
<p>The SEC has charged Binance and BAM Trading with operating unregistered securities exchanges, broker-dealers, and clearing agencies. They are also accused of conducting unregistered offerings and sales of crypto assets, including the Binance USD stablecoin.</p>
<h2 style="text-align: center;" id="binance-responds">Binance Responds</h2>
<p>Binance labeled the SEC&#8217;s complaint as &#8220;disappointing&#8221; and denied the allegations. The exchange asserts that it has been cooperating with the SEC and seeks a negotiated settlement. Binance believes that the SEC&#8217;s actions undermine America&#8217;s position as a <a href="https://walletinvestor.com/magazine/eu-member-states-finally-approve-mica" target="_blank" rel="noopener">global financial innovation hub</a> and calls for collaborative policy engagement.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">&#8220;This is about the future of digital assets in the United States,&#8221; says <a href="https://twitter.com/Scaramucci?ref_src=twsrc%5Etfw">@Scaramucci</a> on crypto regulation. &#8220;The question is: will the United States continue to lead the world in financial services?&#8221; <a href="https://t.co/3W3Wch6f80">pic.twitter.com/3W3Wch6f80</a></p>
<p>— Last Call (@LastCallCNBC) <a href="https://twitter.com/LastCallCNBC/status/1665869407002714114?ref_src=twsrc%5Etfw">June 5, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="withdrawals-and-market-impact">Withdrawals and Market Impact</h2>
<p>Following the news of the lawsuit, Binance experienced significant withdrawals, totaling $700 million, but this represents a small portion of its reserves. The SEC&#8217;s actions have led to a decline in the market, with cryptocurrencies like BNB, SOL, ADA, and MATIC experiencing drops in value.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>The SEC&#8217;s lawsuit against Binance and its CEO has caused turmoil in the cryptocurrency industry. Binance faces allegations of mishandling funds, evading regulations, and operating unregistered securities exchanges. The exchange denies the claims and emphasizes the importance of collaborative and transparent regulation. The market impact is evident, with Binance experiencing withdrawals and cryptocurrencies facing declines in value. The outcome of this legal battle will likely have significant ramifications for the crypto industry.</p>

SEC Accuses Binance and CEO of Mishandling Funds

Съдържание

WalletInvestor

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