It’s official – the SEC is suing Binance and CEO Changpeng “CZ” Zhao.
While the Securities and Exchange Commission’s continued crypto crackdown may seem like the start of another black swan event in crypto, Binance is not going down without a fight.
For those who have yet to catch up on the saga, here is a quick breakdown of what the SEC is accusing Binance of:
- Engaging in unregistered offers and sales of crypto assets securities
- Offering securities market functions without registering with the SEC
- Soliciting U.S. investors to buy, sell, and trade crypto asset securities through unregistered trading platforms
In response, Binance has published an official response to the SEC, claiming that it “aims to unilaterally define crypto market structure.”
“We are disappointed that the U.S. Securities and Exchange Commission chose to file a complaint today against Binance seeking, among other remedies, purported emergency relief.” says the response.
“Despite our efforts, with its complaint today the SEC abandoned that process and instead chose to act unilaterally and litigate. We are disheartened by that choice. “
It also adds that “any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong, and there is zero justification for the Staff’s action in light of the ample time the Staff has had to conduct their investigation.”
CEO Changpeng “CZ” Zhao also retweeted a post highlighting that the SEC has taken more action against long-standing crypto entities than it ever did against the now-defunct centralized exchange FTX.
Furthermore, while this may seem like a damning lawsuit against Binance, news platform Wu Blockchain has subsequently pointed out that the charges are all civil lawsuits, and not criminal charges.
However, Binance still intends to protest such lawsuits, drawing parallels to Coinbase’s recent legal action against the SEC after months of silence from the regulatory body.
“Still, we stand with digital asset market participants in the U.S. in opposition to the SEC’s latest overreach, and we are prepared to fight it to the full extent of the law.” – Binance
This is a developing story. More details will be added as further information is released.
Also Read: SEC Sues Binance and CEO “CZ”, Claims BNB and BUSD are Securities in Latest Filings
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Chaindebrief
