The Securities and Exchange Commission (SEC) of the United States filed suit against Binancehis platform in the United States and Changpeng Zhao (CZ) in the Court of the District of Columbia on June 5.
The US regulator filed 13 charges against Binance, including unregistered offers and sales of BNB tokens, BUSB, Simple Earn and BNB Vault products, and its staking program. Furthermore, the SEC alleges in the lawsuit that Binance failed to register its platform. Binance.com as an exchange or an exchange. He further claimed that Binance and BAM Trading failed to register Binance.US as an exchange, broker, and clearing agency, and CZ was sued as a “control person.”
The SEC’s lawsuit against Binance becomes a new saga of regulatory repression by the North American country against cryptocurrency exchanges.
The SEC warned about the risks of buying cryptocurrencies
In mid-March, the United States Securities and Exchange Commission (SEC) issued an investor alert on Thursday warning that companies offering crypto asset securities may not be complying with US law.
As indicated by the SEC, unregistered offerings of these types of securities may not provide important data, including audited financial statements, for informed decision making. In this way, he ratified that he will deepen the controls on the exchanges.
In its alert to investors, the SEC also warned investors about “proof of reserves” services offered by some cryptocurrency exchanges that supposedly allow users to verify that an exchange has enough assets to back customer holdings.
“Crypto asset entities could use these services instead of audited financial statements in order to hide and confuse customers about the security of their assets,” according to the SEC.
He securities watchdog is trying to take crackdown on the cryptocurrency sector. In this sense, its president described this type of asset as a “wild west” and assumed that the sector is riddled with bad practices.
Regulatory impetus from the SEC intensified after the bankruptcy, in November, of FTXSam Bankman-Fried’s cryptocurrency exchange.
Source: Ambito
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