Binance and CEO Changpeng Zhao sued by SEC – Important Update
Binance Accused of Securities Law Violations by SEC
The US-based BAM Trading, which operates Binance.US, along with Binance and its founders, have been accused of violating various securities laws by the Securities and Exchange Commission (SEC). The SEC has filed 13 charges against Zhao and Binance entities, accusing them of operating unregistered exchanges and clearing agents, misrepresenting trading controls and oversight on the Binance.US platform, and unregistered supply and sale of securities.
Binance and Zhao claimed that US customers were restricted from trading on Binance.com, but in reality, controls were violated to allow wealthy US customers to continue trading. The SEC also alleged that Binance mixed billions of dollars with customer funds and secretly sent them to a separate company controlled by Zhao.
In response, Binance stated that the SEC had cooperated with its investigations from the beginning, but refused to engage effectively and provide the industry with clarity and guidance. Binance also underlined that user assets on their platforms are safe and secure and will strongly defend against any claims to the contrary.
Binance will continue to cooperate with regulators and policymakers in the US and worldwide to protect this technology from misguided lawsuits.
