SEC Files Lawsuit Against Binance and CZ
Binance and its CEO, Changpeng Zhao, are currently facing legal action from the US Securities and Exchange Commission (SEC) for alleged breaches of US securities rules.
Upon news of the lawsuit, the BNB token experienced a decline of approximately 6%. In response, Changpeng Zhao took to Twitter, assuring the community that his team would thoroughly review the SEC’s complaint.
The SEC has brought forth 13 charges against Changpeng Zhao, including the assertion that BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI should be classified as securities. These charges encompass various violations, such as operating unregistered exchanges, broker-dealers, and clearing agencies, as well as misleading representations of trading controls and oversight on the Binance US platform. Furthermore, the SEC alleges the unregistered offer and sale of securities.
Highlighting the extensive nature of the alleged wrongdoing, SEC Chair Gary Gensler stated, “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.”
Subsequently, the Binance team expressed an initial willingness to engage in good-faith negotiations for a settlement. However, the SEC opted to pursue litigation instead of continuing discussions. Binance stands in solidarity with digital asset market participants in the US, contesting what they perceive as the SEC’s overreaching authority. They are fully prepared to vigorously contest the lawsuit within the confines of the law.
The SEC has brought forth 13 charges against Changpeng Zhao, including the assertion that BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI should be classified as securities. These charges encompass various violations, such as operating unregistered exchanges, broker-dealers, and clearing agencies, as well as misleading representations of trading controls and oversight on the Binance US platform. Furthermore, the SEC alleges the unregistered offer and sale of securities.
Highlighting the extensive nature of the alleged wrongdoing, SEC Chair Gary Gensler stated, “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.”
Subsequently, the Binance team expressed an initial willingness to engage in good-faith negotiations for a settlement. However, the SEC opted to pursue litigation instead of continuing discussions. Binance stands in solidarity with digital asset market participants in the US, contesting what they perceive as the SEC’s overreaching authority. They are fully prepared to vigorously contest the lawsuit within the confines of the law.
