After the CFTC, Gary Gensler’s Securities and Exchange Commission (SEC) is attacking Binance and its CEO Changpeng Zhao head-on, accusing them of securities fraud, among other things. CZ communicated following the news, stating that the media had been informed before him and that he and his teams were looking into the situation.
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Binance et son PDG Changpeng Zhao poursuivis par la SEC, le marché crypto passe dans le rouge
The SEC takes on Binance head-on
The Securities and Exchange Commission (SEC)under the leadership of its president Gary Gensler, sues Binance and its CEO Changpeng Zhao over securities fraud allegations and for allowing certain US customers to use Binance rather than Binance US, its US subsidiary.
The information was first revealed by Bloomberg, which shared the complaint document issued by the SEC. The regulator accuses the CZ platform of having allowed the trading of “securities” (or security), a very often controversial subject in the United States given the regulatory vagueness that prevails there.
🚨 The SEC is suing @cz_binance and #Binance, in particular for allowing the trading of “securities”.
The cryptocurrencies cited as such are the following: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.
🧵 pic.twitter.com/1s99mmkBBd
— Cryptoast (@CryptoastMedia) June 5, 2023
As such, the following cryptocurrencies are treated as securities in the SEC complaint: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.
In addition, the SEC accuses Binance of not having registered correctly in order to offer some of its services, in particular as a broker, exchange and clearing house. The SEC also alleges that Binance and its CEO disregarded federal securities laws and “ grew rich by billions of dollars while putting investors’ assets at significant risk “.
The entire crypto market turned red following the news, led by Bitcoin (BTC) which lost 5.5% over 24 hours. Unsurprisingly, the other tokens mentioned also fell sharply, in particular the BNB (the Binance token) which lost 9.6% over 24 hours.
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Binance’s response
Faced with the panic caused by this attack by the SEC, Binance was quick to publish an official response, saying to itself “ disappointed of this decision by the American regulator.
The Changpeng Zhao platform says it is disillusioned insofar as it has always cooperated with the SECin particular in order to help it in the context of its own investigations aimed at tracing or freezing funds.
“But despite our efforts, the SEC abandoned that process by filing its complaint today and chose to act unilaterally and file a lawsuit. We are discouraged by this choice. »
She adds :
“While we take the SEC’s allegations seriously, they should not be the subject of legal action by the SEC, let alone urgent action. We intend to vigorously defend our platform. »
Binance also ensures that Contrary to SEC claims, client funds are completely safe :
“Any allegation that Binance.US platform users’ assets were at risk is simply untrue, and there is no justification for staff action in light of the ample time they have had. to conduct his investigation. All user assets of Binance and Binance-affiliated platforms, including Binance.US, are safe and secure, and we will vigorously defend against any claims to the contrary. »
Moreover, she adds that the SEC attacks have a limited scope, however, as Binance is not a US platform. Finally, she says she is ready to fight to the full extent of the law in the face of this attack from the SEC.
Thus, after Coinbase, it is the giant Binance which is embarking on a standoff against the American regulator which is causing so much harm to the crypto industry in the United States. Who will emerge victorious? We should soon find out.
👉 On the same subject – United States: finally a clear differentiation between security and commodity for DeFi tokens?
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Source: press release
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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