News
BNB Drops Over 10% After Binance Was Sued By SEC
Key Points:
- The price of BNB declined immediately after Binance exchange was sued by the SEC.
- Binance failed to register as a securities exchange and operated unlawfully in the United States, according to the agency.
- The SEC is seeking a permanent injunction against Binance and CZ from engaging in any additional actions.
Binance‘s BNB token has hit its lowest level since March 13 in the wake of news that the U.S. Securities and Exchange Commission had sued the crypto exchange.
According to TradingView data, BNB is currently trading at $278, down more than 10% on the day because of this news. This is the first time in 2 months that BNB is under $300.
As Coincu reported, the SEC is accusing Binance of operating an illegal stock exchange, among other things.
Binance was charged with 13 counts, including unauthorized offers and sales of the BNB (BNB) and BUSD coins, the Easy Earn and BNB Vault products, and its staking program. Furthermore, the SEC claims that Binance failed to register its Binance.com platform as an exchange or a broker-dealer clearing agency. It further stated that Binance and BAM Trading did not register Binance.US as an exchange, broker, or clearing agency. CZ was accused of being a “controlling person.”
The SEC is seeking a permanent injunction against Binance and CZ, as well as disgorgement of ill-gotten earnings with interest and financial penalties.
The lawsuit means that tokens traded on the Binance market constituted securities. BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI are the tokens involved.
The SEC further claims that Binance.US misled regarding market manipulation prevention and enabled wash trading by an unnamed market making trading entity controlled by Zhao.
Binance CEO Changpeng Zhao responded to information regarding the exchange:
“Our team is all standing by instructing systems are stable, including withdrawals, and deposits. We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.”
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Harold
Coincu News
Author: Harold
