8/18/2023 0 Comments Mining binance coin![]() The market is hoping that the CFTC will come to its rescue. ![]() Meanwhile, in the equity market, Coinbase stock closed 12% lower on June 6 following the news. The company added:ĭata firm Nansen reported that users on Binance withdrew over $3 billion within 24 hours of the SEC lawsuit. SEC’s approach and called out the regulator’s refusal to engage with the crypto industry to provide “much-needed clarity and guidance to the digital asset industry.”īinance added that the SEC’s priority did not lie in protecting investors but in claiming “jurisdictional ground from other regulators” such as the Commodity Futures Trading Commission (CFTC). In response to the court case, Binance put up a defiant tone and said that it will “vigorously” defend itself. regulator followed up on the Binance lawsuit, filing a motion to issue a restraining order to freeze assets held by Binance, Binance.US, and its founder Changpeng Zhao. Accusations that Binance commingled customer’s funds for its own interest are similar to those made against now-fallen US crypto exchange FTX and its sister hedge fund Alameda Research. When comparing the SEC’s allegations made against Binance and Coinbase, the charges against the former look more serious. Engaging in wash trading that artificially inflated the trading volume on the Binance.US platform.Using customer’s crypto and fiat assets.Concealing efforts to ensure high-value US investors continue trading on its main platform, despite claiming that the company did not allow US citizens to use.Not allowing Binance.US to operate independently.Misrepresenting how investor protection controls are implemented at the Binance.US platform.Offering staking and profit-generating programs called BNB Vault and Simple Earn.Selling Binance-owned cryptos BNB and BUSD stablecoin.Running an unregistered exchange and allowing US investors to buy, sell, and trade cryptos.His net worth, though still sizable, sank as the crypto market soured last year. Zhao, who goes by CZ, founded Binance in 2017 and his soaring wealth saw him rapidly climb the ranks of the world’s richest. That’s the estimated net worth of Changpeng Zhao, according to Forbes’ real time tracker, ranking him as the world’s 172nd richest person. “The SEC’s real intent here, instead, appears to be to make headlines.” Forbes Valuation “It seems based on these developments that the SEC’s goal here was never to protect investors,” Binance wrote in a blog. Contraīinance strongly disputes the allegations leveled against it and said it will “vigorously” defend itself, adding that it has actively cooperated with the SEC’s investigation and “worked hard to answer their questions and address their concerns.” Although stressing it is taking the “allegations seriously,” Binance said enforcement action was unwarranted and said it is “disheartened” by the regulator’s approach, alleging regulatory “overreach” that damages the U.S.’ status as a global financial hub. ![]() It also follows a number of high profile failures, notably the collapse of Sam Bankman-Fried’s crypto exchange FTX and the failure of lenders Celsius and BlockFi. The lawsuit comes as key financial regulators, including the SEC and CFTC, which usually cooperate on such cases, vie for supremacy in regulating crypto and pay increasingly close attention to the industry. operations and reshape the sector as a whole. clients in March-the SEC is a powerful regulator and its allegations are serious and have the potential to both cripple Binance’s U.S. While this is not the first time Binance has faced regulatory scrutiny-the Commodity Futures Trading Commission sued the company for allegedly illegally serving U.S. The Securities and Exchange Commission (SEC) on Monday sued Binance and its chief executive Changpeng Zhao for allegedly mishandling funds, lying to regulators and violating an array of securities laws.
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