The only time something similar had happened was when charges were filed against Zhao and the company.
Changpeng Zhao announced his resignation from Binance after the million-dollar fine of US$4.3 billion imposed on him by the Department of Justice, the Treasury and the Futures Market Commission (CFTC) for violating anti-money laundering laws and securities market regulation. As a result of this bad news, in less than a day, the withdrawal of about US$1 thousand millions. This amount was calculated by the Nansen firm and without counting the movements of bitcoins.
The only time something similar had happened was when charges were filed against Zhao and the company. The company token, the BNB, fell 9%. Other cryptocurrencies have experienced a drop, but most managed to recover quickly.
The blow was important, but for now the company seems capable of getting through the bad moment. Binance has the equivalent of about US$65 billion on its platform. At the moment the withdrawal has not reached a sufficiently massive scale to compromise the organization. Another point in Binance’s favor is that he is collaborating with authorities and has presented a plan to adjust its operation to the demands of regulators. The company maintains a dominant position in the market.
The charges against Binance were formally filed last March, which was accused of operate illegally in the country, since the company had evaded responsibility for register as an operator, a necessary step to carry out your cryptocurrency buying and selling activity in the country.
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Binance, in the crosshairs of regulators
Last June the Securities and Exchange Commission (SEC) accused Binance of acting as an unregistered operator and defrauding investors, as it allegedly used a Swiss-based fund, Sigma Chain, to overstate the platform’s trading volume.
Gary Gensler, chairman of the SEC, stated that both Zhao and the company formed a “wide web of deception, conflicts of interest, concealment of information and calculated evasion of the law”, as part of 13 charges against Zhao.
Binance had already been accused before by the Futures Trading Commission (CFTC) to offer a series of financial products without having the corresponding permits. The U.S. Department of Justice is seeking more than $4 billion from Binance Holdings Ltd. as part of a proposed resolution of a years-long investigation into the world’s largest cryptocurrency exchange.
Source: Ambito
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