The US Securities and Exchange Commission has filed a lawsuit against the world’s largest digital currency trading platform, Binance, for several violations of securities laws. Among other things, the crypto exchange carried out illegal financial transactions and services without the necessary permits, the SEC announced on Monday in Washington.
Chief of Authority Gary Gensler accused Binance and company founder Changpeng Zhao of cheating, conflict of interest, failure to disclose information and calculated evasion of the law in a press release. For example, investors were misled about risk management and trading volumes. Initially, there were no comments from Binance or Zhao.
Binance says on the company blog that it takes the allegations seriously. However, the company also announced that it would vigorously defend itself. Binance actively cooperated with the investigation. The fact that the authorities have filed a lawsuit is disheartening. “The SEC’s actions undermine America’s role as a global center for financial innovation and leadership,” it said.
Bitcoin, Ether and other cryptocurrencies initially responded with significant price losses to the SEC lawsuit against Binance. The US authorities have been investigating the company for years. In March, the CFTC filed a lawsuit against Binance for violating rules in the US market. The conflict between US regulators and the company has now escalated further as a result of the SEC’s lawsuit.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
