The complaint also charges Samuel Lim, Binance’s former chief compliance officer, with aiding and abetting Binance’s violations.ĪP writer Ken Sweet contributed to this report. but said that Binance lawyers’ posture of surprise over the agency’s aggressive legal arguments rang a little hollow. District Court for the Northern District of Illinois, charging them with numerous CFTC violations. Binance.US oversees 2.2 billion in crypto holdings. In March, the Commodity Futures Trading Commission filed an enforcement action against Binance and Zhao in the U.S. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. regulators have gone after Binance before. The Securities and Exchange Commission today charged Coinbase, Inc. These practices of Binance have essentially been open secrets, so no one who operates in the space will be surprised by any of the charges,” said Cory Klippsten, chief executive of Swan Bitcoin, a bitcoin financial services company. “The new complaint from the SEC against Binance is a laundry list of charges laying out exactly the same claims that many in the Bitcoin and crypto communities have made against Changpeng Zhao and his companies for many years. This includes information collected from users for the purpose of opening a Binance account, providing services to the users, regulatory compliance (such as mandatory record keeping, Anti-Money Laundering (AML), Know-Your-Client (KYC) obligations). Indicted crypto billionaire Sam Bankman-Fried’s $250-million bail deal was the largest ever, secured with his parents’ house. SEC Chair Gary Gensler in a written statement said that Zhao and Binance “engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”īusiness Sam Bankman-Fried’s parents used their house to bail him out. The lawsuit lays out the extent to which the firm‘s owners knew of the alleged legal violations: “Binance’s CCO bluntly admitted to another Binance compliance officer in December 2018, ‘we are operating as a f- unlicensed securities exchange in the USA bro.’” The charges echo practices uncovered after the collapse of the second-largest cryptocurrency exchange, FTX, last year. District Court for the District of Columbia, the SEC lawsuit on Monday lists 13 charges against the firm, which is accused of commingling and diverting customer assets to an entity Zhao owned called Sigma Chain.īinance is a Cayman Islands limited liability company founded by Zhao. securities laws in a lawsuit by the Securities and Exchange Commission.įiled in the U.S. On the federal level, Binance.US is registered as a Money Services Business with FinCEN. ApCryptocurrency Key Takeaways Binance is a popular cryptocurrency exchange with over 600 coins and additional features but it is not available in the US. Binance, the world’s largest cryptocurrency exchange, and founder Changpeng Zhao are accused of misusing investor funds, operating as an unregistered exchange and violating a slew of U.S.
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