Binance and CZ sued by SEC for breaching securities law Binance and CZ sued by SEC for breaching securities law
Breaking - Binance and comapny CEO Changpeng Zhao are accused of U.S. securities violations.
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Updated: Jul. 10, 2023 at 9:17 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The U.S. Securities and Exchange Commission (SEC) has filed a court action against Binance and company CEO Changpeng Zhao, Bloomberg reported June 5
A copy of the filing detailed accusations of ignoring federal securities law and placing investors at risk. It stated that the Defendants had profited in the billions by soliciting U.S. investors to buy, sell, and trade using its unregistered platform.
Charges are also filed against BAM Trading Services Inc and BAM Management – who Binance partnered with in June 2019 to launch Binance U.S. In response to the allegations, CZ said:
“We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.“
CFTC has pending action with Binance
In March, Binance was sued by the Commodity Futures Trading Commission (CFTC) over allegations of regulatory commodity violations, including allowing U.S. citizens to use its cryptocurrency platform without registering with the agency.
CZ commented that the CFTC’s action was “unexpected and disappointing.”
More details on the SEC filing will follow as information is released.
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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BNB, or Binance Coin, is a cryptocurrency created by Binance.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.