{"id":79759,"date":"2023-06-05T18:19:02","date_gmt":"2023-06-05T15:19:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=79759"},"modified":"2025-09-11T12:51:59","modified_gmt":"2025-09-11T09:51:59","slug":"sec-files-suit-against-binance-and-changpeng-zhao","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-files-suit-against-binance-and-changpeng-zhao\/","title":{"rendered":"SEC files suit against Binance and Changpeng Zhao"},"content":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) <a href=\"https:\/\/www.docdroid.net\/I02zzqT\/sec-v-binance-4-pdf\" title=\"\">has filed<\/a> a lawsuit against the Binance cryptocurrency exchange and its CEO Changpeng Zhao.<\/p>\n<p>The U.S. regulator brought 13 counts, including unregistered offers and sales of BNB and BUSD tokens, the Simple Earn and BNB Vault products, and staking.<\/p>\n<p>The suit also alleges that Binance failed to register its Binance.com platform as an exchange, broker-dealer or clearing agency, as did its U.S. subsidiary. Zhao is named as a \u201ccontrol person.\u201d<\/p>\n<p>The SEC also designated the following assets as securities: SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO and AXS.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-06-05-v-18.46.23.webp\" alt=\"Snimok-ekrana-2023-06-05-v-18.46.23\" class=\"wp-image-208534\"\/><figcaption class=\"wp-element-caption\">Source: SEC&#8217;s complaint.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThe defendants unlawfully attracted American investors to buy, sell and exchange crypto assets through unregistered trading platforms accessible online at Binance.com and Binance.US\u00bb, the suit states.<\/p>\n<\/blockquote>\n<p>In a press release, the agency noted that Zhao and his firm controlled client assets, mixed and redirected them \u201cat their discretion.\u201d The SEC contends that the top executive secretly controlled the U.S. subsidiary. Reuters previously <a href=\"https:\/\/u1f987.com\/en\/news\/reuters-reports-binance-controlled-the-accounts-of-an-independent-us-affiliate\">reported<\/a> a similar conclusion.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThey attempted to circumvent U.S. securities laws by announcing fictitious controls that they ignored to retain US-based clients on their platforms\u00bb, said SEC Chairman Gary Gensler.<\/p>\n<\/blockquote>\n<p>The regulator sought a permanent injunction on Binance\u2019s and Zhao\u2019s further activities, disgorgement of ill-gotten gains with interest and financial penalties.<\/p>\n<p>Zhao <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1665740237979492353\" title=\"\">commented<\/a> on the news in a tweet bearing the number \u201c4\u201d. In his <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1610018096122851328\" target=\"_blank\" rel=\"noreferrer noopener\">list<\/a> it signifies \u201cignore <span data-descr=\"fear, doubt, uncertainty\" class=\"old_tooltip\">FUD<\/span> and fake news\u201d. As of writing, the tweet has been deleted.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"654\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-06-05-v-18.33.00-2-1024x654.png\" alt=\"Snimok-ekrana-2023-06-05-v-18.33.00-2\" class=\"wp-image-208530\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-06-05-v-18.33.00-2-1024x654.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-06-05-v-18.33.00-2-300x192.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-06-05-v-18.33.00-2-768x490.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-06-05-v-18.33.00-2.png 1190w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Screenshot of the deleted tweet. Data: Twitter.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abOur entire team is on standby, ensuring system stability, including withdrawals and deposits\u00bb, Zhao said.<\/p>\n<\/blockquote>\n<p>Representatives from Binance said they were disappointed by the SEC\u2019s decision to file the suit. According to the statement, the exchange plans to defend its business, and the regulator\u2019s retreat from constructive engagement is an example of a mistaken and deliberate refusal to provide regulatory clarity for the industry.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Our response to the SEC\u2019s complaint.<a href=\"https:\/\/t.co\/mgXxGTKr67\">https:\/\/t.co\/mgXxGTKr67<\/a><\/p>\n<p>\u2014 Binance (@binance) <a href=\"https:\/\/twitter.com\/binance\/status\/1665755879742767108?ref_src=twsrc%5Etfw\">June 5, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Against this backdrop, BNB slid from around $300 to near $280. The asset has fallen 7.7% in the last 24 hours, according to <a href=\"https:\/\/www.coingecko.com\/\" title=\"\">CoinGecko<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"666\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/BNBUSDT_2023-06-05_18-56-03-1024x666.png\" alt=\"BNBUSDT_2023-06-05_18-56-03\" class=\"wp-image-208535\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/BNBUSDT_2023-06-05_18-56-03-1024x666.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/BNBUSDT_2023-06-05_18-56-03-300x195.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/BNBUSDT_2023-06-05_18-56-03-768x499.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/BNBUSDT_2023-06-05_18-56-03.png 1350w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">15-minute chart of BNB\/USDT on Binance. Data: <a href=\"https:\/\/ru.tradingview.com\/symbols\/BNBUSDT\/\" title=\"\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>In March, the <a href=\"https:\/\/u1f987.com\/en\/news\/cftc-files-suit-against-binance-and-changpeng-zhao\">filed<\/a> <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span>. By the agency\u2019s account, the platform violated derivatives trading rules by operating without proper registration and \u201cwillfully evading\u201d U.S. law.<\/p>\n<p>In response to the charges, Zhao <a href=\"https:\/\/u1f987.com\/en\/news\/changpeng-zhao-calls-cftc-lawsuit-unexpected-and-disappointing\">stated<\/a> that the Commission\u2019s claims contain \u201can incomplete statement of facts,\u201d and his company does not agree with many of the points cited.<\/p>\n<p>Rostin Behnam, the regulator\u2019s head, later explained that <a href=\"https:\/\/u1f987.com\/en\/news\/cftc-chief-says-binance-deliberately-violated-regulators-rules\">Binance had intentionally violated<\/a> the established rules.<\/p>\n<p>Earlier, the exchange <a href=\"https:\/\/u1f987.com\/en\/news\/binance-denies-reuters-report-that-it-commingled-customer-and-corporate-funds\">denied<\/a> Reuters\u2019 reporting of a claim that user funds and revenues were commingled in 2020 and 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against the cryptocurrency exchange Binance and its CEO Changpeng Zhao.<\/p>\n","protected":false},"author":1,"featured_media":79760,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,128],"class_list":["post-79759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"37","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=79759"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79759\/revisions"}],"predecessor-version":[{"id":79761,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79759\/revisions\/79761"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/79760"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=79759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=79759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=79759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}