The United States securities regulator has sued the world’s largest crypto exchange, Binance.
The Crypto market suddenly went into a deep as US Securities Exchange Commission accused Binance, Binance founder and CEO Changpeng “CZ” Zhao on claims of going against federal securities laws on Monday.
The Securities and Exchange Commission (SEC) has accused Binance with mixing “billions of dollars” in client assets and secretly transferring them to a different business owned by Changpeng Zhao, the founder of Binance.
The SEC alleges that BNB, Binance native token and BUST stable coin are both unregistered securites. The price of Binance’s native BNB token, plunged by more than 9% on the news.
Gurbil Gurbil, the director of SEC enforcement, said,
“We argue that Zhao and the Binance entity not only knew the traffic rules but made a conscious decision to circumvent the rules and put their customers and investors at risk.” Grewal declared.
Among other things, the SEC has publicly asserted that Zhao and Binance have US customers banned from trading on Binance.com, but
“In fact, Zhao and Binance are prohibited from trading on Binance.com by large US customers. They are subverting their controls to secretly prevent them from continuing.” Enable “On the Binance.com platform”.
The SEC also publicly alleged that Zhao and Binance had established Binance.US as an independent trading platform for U.S. investors, but that “Zhao and Binance are covertly operating the Binance.US platform behind scenes.
Founder CZ announced on Twitter that he hadn’t seen the lawsuit, saying:
Haven’t seen it yet,” he wrote on Monday. “The media get information before we do.”
In a blog post, Binance released an announcement in which it claimed that it has;
“actively cooperated with the SEC’s investigations and has worked hard to answer their questions and address their concerns,” as well as work toward a resolution.
According to the statement,
“All user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and we will vehemently contest any claims to the contrary.