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News

SEC Begins Counterattack In Lawsuit Against Binance

August 29, 2023 - Around 2 mins mins to read

Key Points:

  • The SEC takes a step forward in its case against Binance, filing a sealed motion for undisclosed documents.
  • Its June lawsuit accuses Binance of mishandling funds, misleading stakeholders, and enabling unregulated trading for U.S. investors.
  • Binance, Binance.US ensures U.S. customer assets stay put with an agreement amid the ongoing regulatory battle.
The U.S. Securities and Exchange Commission (SEC) filed a sealed motion with the District Court for the District of Columbia, requesting the court allow it to submit certain sealed documents.
SEC Begins Counterattack In Lawsuit Against Binance

Although the content of the specific document has not been made public, it may mean that the SEC is preparing to further reveal its allegations and evidence against Binance.

In June, the agency sued Binance and Changpeng Zhao for violating US securities rules. The commission sued Binance and CZ for violating US securities rules. In a 13-count indictment filed Monday, the SEC accused Binance of mishandling customer funds and lying to regulators and investors about its operations.

The regulator said Binance had been commingling “billions of dollars” of customer funds and secretly sending them to an independent company controlled by CZ.

The allegations include misleading investors about the adequacy of its systems to detect and control manipulative trading. The regulator also said that Binance did not do enough to limit U.S. investors’ access to Binance’s unregulated exchange.

The U.S. regulator alleged that Zhao and his exchange worked to subvert “their own controls” to allow high-net-worth U.S. investors and customers to continue trading on Binance’s unregulated international exchange.

Binance and Binance.US have entered into an agreement with the agency to ensure that U.S. customer assets remain in the United States until a sweeping lawsuit filed by the regulatory agency is resolved.

To make certain that U.S. customer assets do not go offshore, the agreement allows only Binance.US employees to have access to these assets.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Binance

Binance.US

Changpeng Zhao

CZ

SEC

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

SEC Begins Counterattack In Lawsuit Against Binance

Key Points:

  • The SEC takes a step forward in its case against Binance, filing a sealed motion for undisclosed documents.
  • Its June lawsuit accuses Binance of mishandling funds, misleading stakeholders, and enabling unregulated trading for U.S. investors.
  • Binance, Binance.US ensures U.S. customer assets stay put with an agreement amid the ongoing regulatory battle.
The U.S. Securities and Exchange Commission (SEC) filed a sealed motion with the District Court for the District of Columbia, requesting the court allow it to submit certain sealed documents.
SEC Begins Counterattack In Lawsuit Against Binance

Although the content of the specific document has not been made public, it may mean that the SEC is preparing to further reveal its allegations and evidence against Binance.

In June, the agency sued Binance and Changpeng Zhao for violating US securities rules. The commission sued Binance and CZ for violating US securities rules. In a 13-count indictment filed Monday, the SEC accused Binance of mishandling customer funds and lying to regulators and investors about its operations.

The regulator said Binance had been commingling “billions of dollars” of customer funds and secretly sending them to an independent company controlled by CZ.

The allegations include misleading investors about the adequacy of its systems to detect and control manipulative trading. The regulator also said that Binance did not do enough to limit U.S. investors’ access to Binance’s unregulated exchange.

The U.S. regulator alleged that Zhao and his exchange worked to subvert “their own controls” to allow high-net-worth U.S. investors and customers to continue trading on Binance’s unregulated international exchange.

Binance and Binance.US have entered into an agreement with the agency to ensure that U.S. customer assets remain in the United States until a sweeping lawsuit filed by the regulatory agency is resolved.

To make certain that U.S. customer assets do not go offshore, the agreement allows only Binance.US employees to have access to these assets.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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