![]() Since 2019, Binance has run a separate exchange for customers in the United States, known as Binance.US, to comply with U.S. So far, the biggest target has been FTX, a company that collapsed in spectacular fashion and faces a slew of criminal charges that threaten to send its founder and former CEO, Sam Bankman-Fried, to prison for over 100 years. SEC's actions are the latest in a barrage of actions being taken by regulators against crypto companies. ![]() customers on their platforms." Regulators are going after crypto companies securities laws by announcing sham controls that they disregarded behind the scenes so they could keep high-value U.S. "Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law," said SEC Chair Gary Gensler, in a statement. customers to trade crypto on an exchange that is supposed to be off-limits to U.S. also accused Binance of running an unregistered trading platform in the U.S. accused Zhao and his company of misleading investors about Binance's ability to detect market manipulation as well as of misusing customer funds and sending some of that money to a company controlled by CZ, among other charges. SEC: Binance.Business 3 events that will determine the fate of cryptocurrenciesīoth companies are accused of failing to register with the S.E.C., which claims to have regulatory oversight of most cryptocurrencies. These includes Binance.US CEO Brian Shroder and Head of Legal, Krishna Juvvadi. Meanwhile, yesterday’s filing comes at a time Binance and Binance.US have both seen a series of exits of top officials. ![]() The SEC filed a lawsuit against Binance in June. “While the SEC is mindful of seeking the Court’s intervention, immediate production of the requested discovery is essential to determine not only whether Customer Assets are being safeguarded in the manner agreed to by the parties and contemplated by the Court in the Consent Order, but whether it may be appropriate for the SEC to seek an order to show cause why BAM should not be held in contempt of that Order.”Īccording to the regulator, Binance.US needs to provide the information and other critical assurances that its customers’ assets “are not at the mercy” of the parent company Binance and its CEO Changpeng Zhao. In its complaint, the SEC claims nothing has essentially changed from when it first applied for the court’s relief. Per the order, the defendants agreed to avail “expedited discovery and other relief relating to the custody, security, and availability” of the assets of US customers. In the regulator’s words, Binance.US has refused to comply with the consent order agreed with at the court on June 17, 2023. Per a court filing by the regulator, Binance.US has not fully cooperated as expected in an investigation the agency is conducting regarding investor safety and protection.Īt the United States District Court for the District of Columbia that it’s “good faith attempts” to get needed information from the defendants have been largely unsuccessful. The US Securities and Exchange Commission (SEC) has complained about the lack of cooperation from Binance.US, the regulated crypto exchange arm of
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