More Troubles Ahead For Binance?

According to one former SEC regulator, more troubles lay ahead for the world’s largest cryptocurrency exchange.

John Reed Stark believes that new DOJ filings could potentially spell the end of the exchange while the SEC simultaneously builds a case against Binance, but will Binance go down so easily?

The exchange was ordered to pay a $4 billion penalty as part of its settlement with the Department of Justice and replaced Changpeng Zhao with Richard Teng, yet the authorities are still purportedly not done with Binance.

As part of the settlement, the U.S. Department of Justice now has considerable oversight of the company, and this alone is enough reason for concern, not to mention the bevy of new filings against the exchange.

John Reed Stark detailed Binance’s woes in this lengthy social media thread:

Breaking News: A Binance Double Whammy. 1) Newly Unsealed US DOJ Filings Could Mean the End of Binance; and 2) SEC Files Supplemental Pleading Against Binance, Strengthening the SEC Binance Lawsuit Exponentially

There’s been a flurry of newly released Binance-related filings… pic.twitter.com/igN2I9Y7cP

— John Reed Stark (@JohnReedStark) December 9, 2023

Bloomberg Crypto summarized the latest developments: “The SEC says Binance’s recent $4.3 billion settlement with the Justice Department and other US authorities bolsters its own case against the world’s biggest crypto exchange.”

The SEC says Binance’s recent $4.3 billion settlement with the Justice Department and other US authorities bolsters its own case against the world’s biggest crypto exchange https://t.co/N0ARCXmDgT

— Bloomberg Crypto (@crypto) December 9, 2023

JUST IN:

Binance could face more charges according to former SEC chief, John Reed Stark

— Whale | Dinobet.io (@WhaleChart) December 10, 2023

Coin Paprika explained:

In the ongoing SEC case against Binance, The SEC is using facts from Binance’s DOJ agreement in its case against the firm and its former CEO. Stark explains how the fact that Binance admitted to avoiding U.S. laws in the DOJ case has strengthened the SEC’s case against them.

Colin Wu writes: “The SEC said Binance Holdings Ltd.’s $4.3 billion settlement agreement with the DOJ and others bolstered the SEC’s lawsuit against Binance, asking the court to refer to CZ’s admissions in the settlement. Binance and CZ have asked the court to dismiss the SEC’s lawsuit.”

The SEC said Binance Holdings Ltd.’s $4.3 billion settlement agreement with the DOJ and others bolstered the SEC’s lawsuit against Binance, asking the court to refer to CZ’s admissions in the settlement. Binance and CZ have asked the court to dismiss the SEC’s lawsuit.…

— Wu Blockchain (@WuBlockchain) December 9, 2023

Cryptopolitan outlined some of the compliance measures Binance must now abide by:

Binance’s new compliance commitments encompass a wide range of areas, from policies and procedures to internal controls and anti-circumvention measures.

These obligations will likely cost Binance tens, if not hundreds, of millions of dollars to implement and maintain. Furthermore, the DOJ Compliance Monitor’s mandate is so extensive that a 13-page document is required just to outline an overview of Binance’s obligations.

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