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Bitcoin Plummets After SEC Sues Binance for Securities Violations

AA News - Andrew Throuvalas 2023-06-06 00:15

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance – the world’s largest crypto exchange – on Monday, alongside its CEO Changpeng Zhao (CZ) and partner firm, Binance US.

Allegations include securities law violations such as self-dealing market manipulation, and the sale/offer of multiple unregistered securities. 

  • According to a press release from the SEC on Monday, the agency alleged that both Binance and Binance US operated “unregistered national securities exchanges, broker-dealers, and clearing agencies.”
  • Some of Binance’s unregistered products include its staking program, certain crypto lending products, and its native exchange tokens BUSD and BNB
  • The SEC also echoed allegations from the Commodities and Futures Trading Commission (CFTC) in March, such as market manipulation and illegal service to U.S. clients from its international platform. 
  • “Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler in a prepared statement. 
  • Bitcoin immediately tanked on the news, dropping from $26,800 before the release to just $26,297 at press time. 
  • In response, CZ tweeted “4” – a sign to followers to ignore negative press and “fake news” about the exchange designed to spread fear, uncertainty, and doubt. “We will issue a response once we see the complaint,” he added.  

The post Bitcoin Plummets After SEC Sues Binance for Securities Violations appeared first on CryptoPotato.