NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Binance and founder Changpeng Zhao sued by SEC: Here's why
    Binance and founder Changpeng Zhao sued by SEC: Here's why
    Business

    Binance and founder Changpeng Zhao sued by SEC: Here's why

    Written by Athik Saleh
    June 06, 2023 | 12:36 pm 3 min read
    Binance and founder Changpeng Zhao sued by SEC: Here's why
    SEC filed 13 charges against Binance and CEO Changpeng Zhao

    World's largest crypto exchange Binance is facing multiple legal challenges in the US. Now, the Securities and Exchange Commission (SEC) has sued the exchange and its founder Changpeng Zhao for violating security rules. The securities regulator filed 13 charges against the crypto exchange in the US District Court for the District of Columbia. Let's see what the regulator accuses Binance of.

    Why does this story matter?

    The pressure is mounting on Binance in the US. The SEC is the third US government authority to accuse the crypto exchange of malpractices in the last few months. In March, the US Commodity Futures Trading Commission (CFTC) accused Binance and Zhao of running an "illegal" exchange. The US Department of Justice is also investigating the exchange of possible violations of Russian sanctions.

    Binance allegedly allowed US customers to use unregulated international exchange

    In the lawsuit, the SEC alleged Zhao and Binance "subverted" their own controls by allowing "high-value" US customers to trade on Binance's unregulated international exchange (Binance.com). The regulator also accused Zhao and Binance of secretly controlling Binance's US platform (Binance.US) from behind the scenes. A Binance compliance officer allegedly said the company was "operating as a f***ing unlicensed securities exchange in the USA bro."

    SEC accused Binance of commingling customers' assets

    The SEC's allegations do not end there. Per the regulator, Binance and Zhao commingled customers' assets and diverted them to different entities, including Sigma Chain and Merit Peak Limited (both owned by Zhao). Merit Peak and Sigma Chain were allegedly used for inflating trade volumes. The SEC also accused Sigma Chain of engaging in "wash trading" or trading with themselves.

    Binance.com and Binance.US allegedly violated registration requirements

    In the complaint, the SEC accused Binance and its US affiliate of operating as "exchanges, brokers, dealers, and clearing agencies" from at least 2017. The regulator said both violated registration requirements. It added that Zhao is also responsible for these violations as a "control person." According to SEC, Binance.com and Binance.US earned at least $11.6 billion in revenue from transaction fees.

    We are disappointed by the complaint: Binance

    "We are disappointed that the U.S. Securities and Exchange Commission chose to file a complaint today against Binance seeking, among other remedies, purported emergency relief," Binance wrote in a blog post. "We have actively cooperated with the SEC's investigations... But despite our efforts, with its complaint today, the SEC abandoned that process and instead chose to act unilaterally and litigate," it added.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Securities and Exchange Commission (SEC)
    Cryptocurrency

    Securities and Exchange Commission (SEC)

    Former CEO Parag Agrawal, other executives sue Twitter: Know why Parag Agrawal
    Zoom fired its president Greg Tomb before completing a year Zoom
    What is Silvergate fallout that is pulling down crypto market Cryptocurrency
    How Indian-origin techie Nishad Singh got involved in FTX storm Cryptocurrency

    Cryptocurrency

    Cryptocurrency prices: Here are rates of Bitcoin, Dogecoin, Tether, Ethereum Bitcoin
    Sensex gains 240 points, Nifty settles near 18,600 mark Stock Market
    Cryptocurrency prices today: Check rates of Bitcoin, Ethereum, BNB, Tether Bitcoin
    Today's cryptocurrency prices: Check rates of Bitcoin, Ethereum, Dogecoin, Tether Bitcoin
    Next News Article

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023