Breaking: SEC Files Charges Against Binance for Mishandling Funds and Deceiving Regulators | National Crowdfunding & Fintech Association of Canada

New York Times | Matthew Goldstein, Emily Flitter and David Yaffe-Bellany | Jun 5, 2023

The SEC said the world’s largest cryptocurrency exchange mixed billions of dollars in customer funds and secretly sent them to a separate company controlled by Binance’s founder, Changpeng Zhao.

• The Securities and Exchange Commission (SEC) has levelled significant allegations against Binance, the world's leading cryptocurrency exchange, accusing it of mismanaging customer funds and dishonest communication with regulators. Binance is accused of blending customer funds amounting to billions of dollars and covertly transferring these to Merit Peak Limited, a separate entity under the control of Binance founder, Changpeng Zhao.
  • The SEC has lodged 13 charges against Binance and Changpeng Zhao, alleging they enriched themselves to the tune of billions of US dollars, while putting investor assets at considerable risk.
  • Among the charges are claims that Binance misled investors regarding the adequacy of its systems to detect and control manipulative trading and their efforts to prevent US investors from trading on its unregulated platform.

See:  OSC Pursues Binance Investigation, Unfazed by Crypto Exchange’s Departure from Canada

• These charges represent the latest effort by US regulators to clamp down on the often-lawless landscape of cryptocurrency trading and compel major entities in the sector to abide by US laws.
• Binance is already facing intense scrutiny, with investigations from the Justice Department for potential money laundering violations and a decline in market dominance following the loss of its outside auditing firm, Mazars.

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• Source: https://ncfacanada.org/breaking-sec-files-charges-against-binance-for-mishandling-funds-and-deceiving-regulators/