The US government has sued Binance, the world’s largest cryptocurrency exchange, and its CEO, CZ. So what was the reason for this lawsuit and what awaits investors?
The world’s largest cryptocurrency exchange Binancehas been having conflicts with the US government lately. Just a few months ago, the U.S. Commodity Futures Trading Commission (CFTC) announced to Binance and Binance CEO Changpeng Zhao—aka CZ— lawsuit filed. While the effects of this event continue, this time a new case issue is on the agenda.
With the US leg of Binance, CZ, now with the US Securities and Exchange Commission (SEC) was sued. In a statement released by the SEC, Binance, and thus the company’s CEO, violates US securities laws. has violated specified. To put it in plain language, the SEC said that Binance both did not comply with US laws and that investors you cheated is thinking.
SEC alleges Binance misappropriated billions of dollars in client funds
The institution, which is the regulator of the financial markets in the country, is against the giant stock market. on 13 charges found. The SEC alleges that Binance did not separate client funds from its own corporate reserves and that they were sent to a Europe-based company controlled by Zhao. In the statement, “Defendants put investors’ assets at significant risk. they enriched themselves with billions of US dollars” expressions were used.
In addition, the SEC has listed Binance in the US. unregistered He also accused him of running a trading platform and allowing US customers to trade cryptocurrencies on an exchange that shouldn’t be in the country. SEC Chairman Gary Gensler also trying to evade the law while specifying Binance as “Through 13 accusations, Zhao and Binance organizations had extensive deception, conflict of interest, and orchestrated avoidance of the law., not to explain” He said they accused him of things like:
Binance statement: “SEC’s aim is to make headlines”
Binance official on US Securities and Exchange Commission’s case from the website replied. The giant crypto exchange is urging the regulator to complain rather than seek remedies disappointed stated that they had been. The exchange added that they have previously actively cooperated in SEC investigations and are working hard to address the concerns.
The exchange also addresses all claims that user assets on the Binance platform in the US are at risk. it’s completely wrongstated that all user assets are safe. The company also states that the SEC’s purpose is making headlines He added that he was thinking.
SEC wants to freeze Binance’s assets!
Tensions between the US government and the SEC going to climb apparent. Because the institution took a new step on this issue yesterday and requested that the Binance assets be frozen. In the statement made by the SEC, it was stated that this request was to protect customers. On the other hand; All customer wallets located in Binance USA move to new wallets and this wallet information is also requested to be shared with the US government. Many lawyers say the SEC is taking a very aggressive stance.
Now let’s get to the main issue: What exactly are crypto investors facing?
Let’s leave the editorial part of the job aside and talk about what awaits crypto money investors in our country. First of all, let me state: The lawsuit filed by the SEC concerns “Binance Global” users it’s not a matter. If the judges accept the SEC’s application and Binance freezes US assets, nothing will change in our lives. Because Binance TR and Binance Global we are using.
On the other hand; Binance’s world’s largest Let’s not forget that it is a cryptocurrency exchange. This huge company isn’t that much affected by the lawsuits. Because, according to a report served by CNBC, with the SEC case on the agenda, Binance only $791 million crypto withdrawn. If we were talking about another exchange here rather than Binance, we would probably be talking bankruptcy right now.
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Note: This content cannot be considered as investment advice.