SEC Investigating Binance.US
The United States Securities and Exchange Commission (SEC) is investigating Binance.US over allegations of backdoor control of customer assets, similar to FTX, according to the Wall Street Journal.
SEC Accuses Binance of Fraud
In a lawsuit, the SEC accused Binance and its founder, Changpeng Zhao (CZ), of participating in a conspiracy involving fraud, conflicts of interest, lack of disclosure, and disregard for the law. One allegation is that the exchange redirected customer assets under Zhao’s control.
Binance.US attorneys argued in court that the SEC lacked evidence of asset misuse and urged the judge to halt the investigation into potential fraud.
Separate DOJ Case
The judge overseeing the Binance and SEC case expressed skepticism about asset misappropriation due to Binance and CZ’s guilty pleas in a separate $4.3 billion settlement with the U.S. Justice Department, Treasury, and CFTC.
CZ is awaiting a court review to determine if he can leave the U.S. before his sentencing in February. He is currently restricted from traveling to the UAE.
Hot Take: SEC Continues Investigation into Binance US
The SEC’s investigation into Binance.US is ongoing as they seek evidence of potential fraud and backdoor control over customer assets. This comes after the SEC filed a lawsuit against Binance and its American counterpart in June for their involvement in selling unregistered securities. Binance.US attorneys argue that there is a lack of evidence supporting asset misuse. However, the judge overseeing the case expressed skepticism due to Binance’s recent guilty pleas in a separate case. The outcome of this investigation will have significant implications for both Binance.US and the broader crypto industry.
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