The SEC Continues Investigation Into Binance and CZ Despite Guilty Pleas
The U.S. Securities and Exchange Commission (SEC) is still conducting an investigation into Binance CEO Changpeng Zhao and Binance.US, despite both parties already pleading guilty to charges brought by the Department of Justice (DOJ). The SEC is specifically looking for evidence that Binance still has backdoor access to control Binance.US’ crypto assets.
Back in June, the SEC filed a lawsuit against Binance, accusing the exchange of offering illegal securities. Recently, Zhao pleaded guilty to separate charges related to anti-money laundering protocols and resigned as CEO. Binance also agreed to pay a $4.3 billion fine to the DOJ. However, the DOJ’s complaints did not include allegations of Binance having control over customer funds.
Binance.US attorneys have asked U.S. Magistrate Judge Zia Faruqui to consider dropping the investigation, citing Zhao’s guilty pleas as sufficient grounds. Binance attorney Matthew Laroche stated that the SEC’s lawsuit has caused significant financial harm to the firm, with a sharp decline in assets and monthly users since the case was filed.
Hot Take: SEC Investigation Into Binance.US Raises Concerns
The ongoing investigation by the SEC into Binance.US raises concerns about potential fraud and control over customer funds. Despite Binance and CZ’s guilty pleas on other charges, the SEC is determined to uncover any evidence of misconduct related to crypto assets held by Binance.US. This prolonged investigation could further impact Binance’s reputation and financial stability, as it continues to face legal scrutiny and financial losses. The outcome of this investigation will have significant implications for both Binance and the broader crypto industry.
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