SEC sues Binance and CEO Changpeng Zhao, citing US securities law violations.
and Binance Releases Statement Regarding SEC Lawsuit, Says it’s Ready to Fight.
The U.S. Securities and Exchange Commission (SEC) has recently filed a lawsuit against Binance, the world's largest cryptocurrency exchange, and its CEO Changpeng Zhao. The SEC accuses Binance of mishandling customer funds, misleading investors and regulators, and breaking securities rules. In a surprising signal, the SEC has also classified 12 tokens, including BNB, SOL, MATIC, and ADA, as securities. Binance has expressed disappointment in the SEC's unilateral action and is prepared to fight the lawsuit.
Let's summorize this for you to understand what's going in less than a minute:
The SEC has filed a lawsuit against Binance and CEO Changpeng Zhao, accusing them of mishandling customer funds, misleading investors and regulators, and breaking securities rules.
The SEC has classified 12 tokens, including BNB, SOL, MATIC, and ADA, as securities. This move signals a new approach in the regulation of the cryptocurrency market.
Binance has expressed disappointment in the SEC's unilateral action, stating that they have actively cooperated with the SEC's investigations and have worked hard to answer their questions and address their concerns.
Despite the legal challenges, Binance maintains that all user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure.
Binance is prepared to fight the lawsuit to the full extent of the law, indicating a potential prolonged legal battle.
The lawsuit has caused a leak in the value of Bitcoin, BNB, and other tokens, which have declined since the news broke.
Binance has accused the SEC of refusing to engage productively and provide much-needed clarity and guidance to the digital asset industry.
The SEC's actions have been criticized by Binance as undermining America's role as a global hub for financial innovation and leadership.
Binance has pledged to continue to cooperate with regulators and policymakers in the U.S. and across the globe.
The SEC's lawsuit follows a similar suit filed in March by the Commodity Futures Trading Commission against Binance, adding to the legal challenges faced by the cryptocurrency exchange.