Binance SUED By SEC—Get Your Funds Out NOW
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June 6, 2023 10:20 am
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ProCoin News has written numerous pieces regarding the safety and regulatory risk of both Binance and its U.S. subsidiary Binance.US.
We have long warned that regulators were likely to come for the platform sooner, rather than later. Additionally, Binance’s financial condition has always been a concern.
It’s no secret that audits for the crypto industry, blockchain firms, and trading institutions are opaque at best and the fallout from FTX is still hot on the minds of the investing public.
ProCoin News recently reported that Binance was once again in the hot seat and asked if users’ funds were safe—this was written on June 5th.
Reporting from Reuters unearthed the fact that Binance is allegedly not a separate entity from Binance.US and, that, the two entities commingled funds. …
This report was published earlier this year but resurfaced yesterday directly ahead of the incoming lawsuit from the SEC. …
The levy finally broke yesterday with the filing of a lawsuit by the SEC against Binance. …
The lawsuit lists 13 separate charges including: operating as an unregistered broker/securities dealer, operating with ‘non-existent’ trading controls, market manipulation, and misleading customers.
The U.S. Securities and Exchange Commission announced on Monday:
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023
Crypto Tips provided a brief rundown of the current charges and the broader regulatory scrutiny facing Binance.US and Binance:
Axios confirmed:
Binance, Binance.US and Zhao “defrauded equity, retail, and institutional investors about purported surveillance and controls over manipulative trading on the Binance.US Platform, which were in fact virtually non-existent,” the lawsuit alleges.
It adds that Binance purposely sought to evade U.S. laws by separating Binance.US from Binance in 2018, but that Zhao and Binance still remained heavily involved behind the scenes.
Attorney Jeremy Hogan also weighed in with his own analysis—championing his own predictions and long-held suspicion of Binance.
Exactly two years ago we gave the Binance token (BNB) an 8.5 out of 10 SEC Danger Rating!
And, here we are looking like Nostradamus.
Except that we gave Tether an 11 out of 10 Danger Rating (Spinal Tap!) and…Tether is chugging along just fine. pic.twitter.com/5cBkBGirW1
— Jeremy Hogan (@attorneyjeremy1) June 6, 2023
Luke Martin writes:
“The SEC just sued Binance & CZ for breaking US securities laws. In 2023 @GaryGensler’s SEC has gone after 4 exchanges, numerous projects, & forced crypto offshore.
Just a few years ago he was teaching that 75% of crypto market was NOT a security EVEN in the US. What changed?”
The SEC just sued Binance & CZ for breaking US securities laws.
In 2023 @GaryGensler's SEC has gone after 4 exchanges, numerous projects, & forced crypto offshore.
Just a few years ago he was teaching that 75% of crypto market was NOT a security EVEN in the US.
What changed? pic.twitter.com/FIFbFeM1vn
— Luke Martin (@VentureCoinist) June 5, 2023
The fallout from the lawsuit is not restricted to Binance, according to Protos:
During the case, the SEC added 10 cryptos to its securities list: BNB, Solana, Polygon, Cardano, Binance USD, Cosmos, Decentraland, Axie Infinity, Sandbox, and COTI.
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