SEC Investigates Binance.US
The United States Securities and Exchange Commission (SEC) is continuing its investigation into Binance.US, looking for evidence of potential fraud and customer asset control. This comes after the SEC filed a lawsuit against Binance and Binance.US in June, accusing them of involvement in the sale of unregistered securities and various fraudulent activities.
Binance.US Defends Itself in Court
During a recent court hearing, attorneys for Binance.US argued that the SEC has no evidence of asset misuse. They also highlighted the significant financial impact of the lawsuit on Binance.US, with assets dropping by almost 90% and user base halving since the SEC’s lawsuit was filed. However, the guilty pleas made by Binance and its founder CZ in a separate case involving anti-money laundering laws may influence the judge’s perception of asset misappropriation.
Judge Calls for Resolution
The presiding judge, Zia Faruqui, has asked both parties to resolve their dispute and provide an update by December 15th. Meanwhile, CZ is awaiting a court review to determine whether he can leave the U.S. until his sentencing date in February.
Hot Take: CZ Faces Potential Prison Time
CZ could potentially face up to 18 months in prison under federal sentencing guidelines. The outcome of both the SEC investigation and the court review will have significant implications for CZ and Binance.US.
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