Binance cryptocurrency exchange faced a critical juncture as investigations loomed, compelling its board of directors to weigh the possibility of liquidating the company.
However, a unanimous decision eluded them, keeping the exchange’s fate uncertain. This gripping scenario sheds light on Binance‘s strategy to protect its global operations amidst mounting regulatory scrutiny.
The Securities and Exchange Commission has charged Changpeng Zhao, the founder of Binance Holdings Ltd. (“Binance”), Binance.com, the largest crypto asset trading platform in the world, BAM Trading Services Inc. (“BAM Trading”), and Binance.US, Binance.com’s joint venture partner, with a number of securities laws violations.
The SEC asserted, among other things, that Zhao and Binance surreptitiously allowed high-value U.S. customers to continue trading on the Binance.com platform despite publicly claiming that U.S. customers were prohibited from doing so.
Furthermore, the SEC said that Zhao and Binance secretly oversaw the activities of the Binance.US platform despite publicly claiming that Binance.US was developed as a distinct, independent trading platform for American investors.
SEC Charges Binance of Unregistered Exchange and Sale of Crypto Assets:
“The general population should exercise caution while using or putting any of their hard-earned money on these illegal networks.”
SEC stated in their press release.
Source: Flickr
The SEC accused Binance of running an unlicensed exchange, broker, and clearing agency, selling crypto assets without a license, allowing US users to access its global trading platform, and misleading investors about purported internal controls and market surveillance features.
