The United States Securities and Exchange Commission (SEC) sued Binance, the world’s largest cryptocurrency platform, on Monday for violating a series of regulations with its operations in the country.
The lawsuit filed in federal court in Washington accused the crypto firm of irregularly managing funds from its users and lying to investors and regulatorsamong other things.
Serious complaint against Binance
The SEC filed in total 13 charges against the bitcoin and cryptocurrency exchange company. In addition, the authorities targeted its founder, Changpeng Zhao.
The businessman is accused of “blatantly” ignoring US stock market laws and earning billions of dollars in exchange for putting his clients’ assets at “significant risk”.
How did the Bitcoin price respond?
The price of Bitcoin has presented in the last 24 hours a negative variation of 4.99% and its current price is US$ 25,930.
Camilo dos Santos
“Zhao and the Binance entities were not only aware of the rules, but consciously chose to evade them and put their clients and investors at risk, all in an attempt to maximize their own profits,” Binance Chairman Gary said in a statement. Gensler.
In a 136-page lawsuit, the SEC denounces that Binance has been illegally offering to buy and sell crypto assets in the US on platforms not registered in the country and lying about its alleged surveillance and control systems.
Binance CEO’s response
Through Twitter, Zhao said that the company will provide a response to the claim once it has had time to study it and assured that it has taken measures to ensure that all systems remain stable, including the withdrawal and deposit of funds.
Another complaint against Binance
In March 2023, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit in a federal court in Chicago against Binance and its CEO.
The federal agency filed actions against the exchange platform, alleging the alleged breach of rules relating to trading and derivatives. At the time, the CFTC held that the company evaded its responsibilities by failing to properly register with the entity.
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