SEC Continues Investigation into Binance.US
The United States Securities and Exchange Commission (SEC) is persistently searching for evidence that Binance.US, the largest cryptocurrency exchange, has a backdoor access to user assets. Attorneys for Binance.US have asked the US Magistrate Judge to consider stopping the SEC’s investigation into potential fraud.
SEC Accuses Binance of Fraud
In June, the SEC filed a lawsuit against Binance and Binance.US, accusing them of multiple securities law violations. The charges include operating an unregistered national securities exchange, broker-dealer, and clearing agency, market manipulation, providing illegal services to US clients from the international platform, and diverting US customer assets through a back door.
Binance.US Denies Misuse of User Assets
Binance.US attorneys argued that there is no evidence of misusing user assets and that the SEC’s actions have negatively impacted the trading platform. Since the lawsuit was filed, the exchange has lost nearly half of its monthly users and experienced a significant decline in the value of its assets due to legal expenses.
Judge Believes SEC’s Accusations Are Less Likely
Judge Faruqui stated that the recent settlement deal and CZ’s guilty plea make it less likely for the former CEO to mishandle US customer funds. CZ pleaded guilty to violating the Bank Secrecy Act and failing to implement an anti-money laundering program, resulting in his resignation as CEO and a $4.3 billion fine for Binance.
Judge Urges Resolution between SEC and Binance.US
Judge Faruqui has requested that both parties resolve their disputes and provide an update by December 15.
Hot Take: SEC’s Investigation into Binance.US Continues
The SEC’s persistent investigation into Binance.US and its allegations of fraud continue to impact the cryptocurrency exchange. While Binance.US denies misusing user assets, the recent guilty plea by former CEO CZ and the resulting settlement have raised questions about the validity of the SEC’s accusations. It remains to be seen how this legal battle will unfold and what impact it will have on the future of Binance.US.
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