![]() Binance is said to have earned at least $11.6 billion in revenue from June 2018 to July 2021, mostly from transaction fees.īinance's own cryptocoin offering, BNB, was down over 10 percent in trading following today's SEC lawsuit. Binance further accused the SEC of "overreach" and said that "because Binance is not a US exchange, the SEC's actions are limited in reach."īinance is the world's largest crypto asset trading platform, with a trading volume of $9.58 trillion in 2021, the SEC lawsuit said. "All user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and we will vigorously defend against any allegations to the contrary," Binance said. It said there is "zero justification" for the lawsuit, that the SEC is trying "to claim jurisdictional ground from other regulators," and that "any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong." As we previously wrote, the CFTC lawsuit seeks disgorgement, civil monetary penalties, and permanent trading and registration bans.īinance issued a response to the SEC on Monday. The complaint is similar to one filed in March against Binance and Zhao by the US Commodity Futures Trading Commission (CFTC). The SEC lawsuit has 13 charges alleging violations of the Securities Act and Exchange Act. Advertisementĭefendants also include related companies BAM Trading Services and BAM Management US Holdings Inc. ![]() and even where and with whom investor funds and crypto assets were custodied" and "attempted to evade US securities laws by announcing sham controls that they disregarded behind the scenes so that they could keep high-value US customers on their platforms," he said. SEC Chair Gary Gensler said that Binance entities and Zhao "engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law." They "actively conceal who was operating the platform. In a press release, the SEC alleged that "while Zhao and Binance publicly claimed that US customers were restricted from transacting on, Zhao and Binance in reality subverted their own controls to secretly allow high-value US customers to continue trading on the platform." ![]() The SEC is seeking fines, disgorgement of ill-gotten gains with interest, and injunctions. The CCO was also quoted as saying, "We do not want. "Defendants have unlawfully solicited US investors to buy, sell, and trade crypto asset securities through unregistered trading platforms available online at and Binance.US," alleged the SEC complaint in US District Court for the District of Columbia.īinance's CCO (chief compliance officer) "bluntly admitted to another Binance compliance officer in December 2018, 'we are operating as a fking unlicensed securities exchange in the USA bro,'" according to the lawsuit. The US Securities and Exchange Commission today sued Binance and its CEO/founder Changpeng Zhao, alleging that the defendants' "blatant disregard" of federal law "enriched themselves by billions of US dollars while placing investors' assets at significant risk." Getty Images | Bloomberg reader comments 150 with
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