No menu items!

Binance Confronts SEC Lawsuit Alleging Illicit Trading Practices

The SEC’s Accusations Against Binance

In a recent turn of events, the Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the world’s leading cryptocurrency exchange. The lawsuit, which disappointingly came to Binance on Monday, accuses the platform of operating an illicit trading operation within the United States.

According to the SEC, Binance’s founder, controlling shareholder, and current CEO, Changpeng Zhao, is a defendant in this case. The lawsuit alleges that Zhao and Binance mismanaged their customers’ funds, rerouting them to Sigma Chain, a trading company under Zhao’s control.

Binance’s Rebuttal to the SEC’s Allegations

In response to the SEC’s lawsuit, Binance posted a statement on their blog expressing disagreement with the accusations. The company had expected to reach a settlement with the U.S. regulatory body. However, Binance states that the SEC abandoned the settlement process, choosing instead to act independently and proceed with litigation.

Binance staunchly denies any allegations suggesting that the assets of users on the Binance.US platform have ever been at risk. They insist that these allegations are entirely baseless and unfounded.

Historical Scrutiny of Binance by U.S. Regulators

Binance has been under the radar of U.S. regulators for years now. In late 2020, both the SEC and the Justice Department issued subpoenas to the U.S. arm of the exchange. This information comes from documents viewed and previously reported by the Journal.

Since then, officials have escalated their enforcement efforts. This move follows the downfall of various cryptocurrency companies, including FTX, one of Binance’s significant competitors.


Recent Articles

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here