The U.S. Securities and Exchange Commission (SEC) has filed 13 charges against Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and its founder, Changpeng Zhao, alleging violations of securities law.
The charges include operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, and the unregistered offer and sale of securities.
According to the SEC, Binance and Zhao made a public statement that US customers were barred from using Binance.com, and in reality, bypassed their own regulations with significant transactions to keep using their platform. The regulator also says Binance and Zhao covertly controlled Binance.US.
The SEC's accusations extend to the claim that Binance has been mixing "billions of dollars” in customer funds and secretly sending them to an entity owned by its founder Changpeng Zhao. SEC Chair Gary Gensler stated that Binance and Zhao engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.
Binance has responded to the SEC, saying it has actively cooperated with the regulator’s investigations and worked diligently to answer their questions and address their concerns in the past.
The exchange lamented the SEC’s unilateral action, which it views as part of the SEC's misguided refusal to provide clarity and guidance to the digital asset industry. It emphasized its commitment to maintaining user assets' safety on its platforms, including Binance.US.
On social media, Patrick Hillmann, Binance’s Chief Communications Officer, said there is “zero evidence that users’ funds were ever at risk” as there has “never been any sort of misuse of spending of user funds for corporate purposes.”
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/jun/06/
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