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- SEC Slams Binance with Lawsuit
GM, this is The Crypto Explorer, the only newsletter with headlines so hot our writer can't stand the heat! 🥵
Here’s what we got for you today:
🤯SEC Slams Binance with Lawsuit!
🧱 Around The Block: Atomic Wallet hacker sends crypto to a mixer used by Lazarus Group.
🤯SEC Slams Binance with Lawsuit!
The SEC has brought a case against Binance, the world’s largest cryptocurrency exchange.😱
The SEC alleges that Binance mixed billions of dollars in customer funds and secretly transferred them to a separate company controlled by Binance's founder, Changpeng Zhao, called Merit Peak Limited.
But that’s not all. 😲
It also claims that Binance misled investors about its ability to detect manipulative trading and restrict US users from its international platform.
For proper context:
Binance has long been based outside the United States, offering high-risk trading options that are not legal for American customers.
In 2019, it started a separate exchange in the United States called ‘Binance.US’ that offered a smaller array of trading capabilities.
However, the company said that the new exchange would operate separately from Binance, under its own leadership.
The SEC is truly coming big on Crypto this year, and we're all waiting to see who survives the regulatory thunderstorm at the end of this year.
Will Binance come out unscathed?😬
And why did this have to happen ten minutes after I buy!😞
So, what's Binance's response to this legal onslaught?
In a blog post, Binance said its leaders had been trying to negotiate a settlement with regulators and were “disappointed” and “disheartened” by the S.E.C.’s decision to bring a case.
The Exchange described the case as a “misguided refusal to provide clarity and guidance to the digital asset industry”, vowing to fight back vigorously. 💪
Phew! We feel a lot better now……..Binance is gonna fight back …..We guess there’s no need to panic …..What’s the worst that could happen?😬
This is not the first time Binance has faced legal action from federal regulators in the United States.
In March, the Commodity Futures Trading Commission filed a civil enforcement action against the exchange and its Changpeng Zhao (CZ).
The action seeks to permanently banish Binance from the United States and bar CZ for life from doing business that falls under its jurisdiction.
The U.S. Department of Justice is also investigating Binance for potential money-laundering violations.
Yikes! Binance is going through a lot❗❗
All the allegations against Binance share similarities with those that led to criminal charges against FTX's founder, Sam Bankman-Fried, for misusing customer deposits.😳
Let's hope these allegations don't stick because if Binance goes down, the whole crypto market might take a tumble.
Keep your fingers crossed, folks! 🤞
🧱 Around The Block: Atomic Wallet hacker sends crypto to a mixer used by Lazarus Group.
👺Atomic Wallet Hack: Elliptic reports that an Atomic Wallet hacker sends crypto to a mixer used by Lazarus Group.
⚖️Crypto Regulation: Coinbase, Robinhood, and CFTC to testify in Congress over the draft crypto bill.
🚨Prison Sentence: Ex-NFL team owner Reggie Fowler gets 6 years for crypto ‘shadow banking’.
💼Binance: SEC complaint hints at why Brian Brooks resigned as Binance.US CEO.
That's all we've got for you today.
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In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.
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