Leading US financial watchdog is suing Binance, the world’s largest cryptocurrency exchange, over allegations. “make billions of dollars in “exposes investors’ assets to significant risk””, explain The keeper.
The Securities and Exchange Commission (SEC) accuses the unheadquartered exchange, as well as its founder and Chinese-Canadian boss Changpeng Zhao, of embezzlement, manipulation and illegal sale of financial securities on American soil.
In a filing in federal court in Washington on June 5, the SEC notes that these “billions of dollars” Was “secretly sent to another company” controlled by Changpeng Zhao, the British newspaper clarifies.
According to the SEC, Binance generated $11.6 billion in revenue from June 2018 to July 2021. “most of which came from transaction fees,” relief CNBC. Platform “first ‘open, then more cautious’ worked on attracting American clients”, specify the American economic media.
“A flagrant disregard for the rules”
The stock market police accuse Binance of practicing its activities in “A flagrant disregard for trade security and market protection laws” continues Wall Street Magazine. The accusation includes this short verdict issued in 2018 by the Binance Compliance Manager:
“We operate like a goddamn unlicensed stock exchange in the United States.”
This is not the first SEC attack on Binance, reminds Wall Street daily. However, this “an important bet for justice to recognize its jurisdiction in the crypto sector, which regularly challenges the fact that digital assets are financial securities”.
For Weather, “This is a new attack on Binance after the US financial products regulator, the CFTC, appointed it at the end of March for the same reasons.”
The Swiss newspaper notes that Binance responded by explaining that “SEC Decisions Undermine US Role as International Platform for Financial Innovation”. And its CEO, Changpeng Zhao, criticized the SEC with the following words: “This is an attack on the entire sector.”
Source: Courrier International
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