The US SEC sued Binance Exchange & imposed 13 charges over potential violation of federal securities laws.
Binance is a global crypto exchange. BinanceUS is an independent subsidiary of Binance Exchange. Changpeng Zhao (CZ) is the CEO & co-founder of Binance Exchange. Over the past couple of years, Binance tried to keep BinanceUS separate from any of its crypto businesses, to comply with the US regulation system.
On 5 June 2023, The United States Securities and Exchange Commission (SEC) announced that the agency sued Binance, BinanceUS, & Binance CEO CZ.
The SEC body alleged that Binance & BinanceUS offered unregistered securities trading services in the US jurisdiction while failing to register as a clearing agency, broker, & exchange.
Also, the securities regulatory body alleged that CZ controlled the BinanceUS exchange and also company’s funds were commingled.
The SEC agency also targeted Binance exchange over Binance stablecoin (BUSD) & Binance smart chain crypto token (BNB). According to the SEC agency, Binance violated securities law because it was providing BUSD & BNB token offerings against securities laws.
Note: BUSD & BNB are totally independent of Binance’s crypto business and they use “Binance” word as a part of promotional strategy.
Furthermore, the SEC body also claimed that Binance was secretly providing services to huge numbers of American citizens, while publicly claiming that it was not available in US jurisdiction.
It is worth noting that the SEC body failed to dig out any new things against the Binance exchange. Earlier this the US CFTC agency sued Binance Exchange over similar charges, while Binance exchange denied all such allegations.
Over the past 4-5 months, the SEC body targeted several crypto exchanges over crypto staking services, and also in this suit the SEC body charged the Binance exchange over crypto staking services.
Earlier this we already reported that Binance was unstacking all of its funds from the staking pools. At the time, many reports predicted that Binance was planning to fight against the potential upcoming regulatory action. So here we can say that Binance was already aware of this suit around a month ago.