2023-06-05 20:39:31
A US government lawsuit once morest the cryptocurrency platform Binance accused of circumventing laws
The world’s largest cryptocurrency exchange, Binance, and its president, Chang Bing Zhao, are facing a US government lawsuit for allegedly circumventing laws, which was filed by the Securities and Exchange Commission concerned with the responsibility for financial market oversight, today, Monday.
According to the document filed before a federal court in Washington, “Binance” allowed residents of the United States to use its platform, while the company is not registered with the US authorities.
The lawsuit is a new attack on the “Binance” platform by the US Financial Products Regulatory Authority, CFTC, since the end of last March, for similar reasons.
This news caused the decline of “Bitcoin”, the most important cryptocurrency in terms of traded value (more than $ 500 billion), by regarding 2% within minutes.
As for Binance, the cryptocurrency associated with the Binance platform and the fourth digital currency in global valuation, it lost more than 5% of its value in less than an hour.
“Our team is ready to ensure the stability of our systems, including withdrawals and deposits,” Zhang Bing Zhao wrote on his Twitter account. “We will respond (to the subpoena) as soon as we see the document.”
The Securities and Exchange Commission takes the Binance platform not to register it or its cryptocurrencies such as BNB or its other financial products in the United States.
The regulator asserts that, contrary to what Binance has made public, its US branch and the funds deposited in it by customers were subject to the control of the parent company.
“Changping Zhao and entities affiliated with Binance are responsible for fraud, conflicts of interest, lack of transparency, and willful circumvention of the law,” said SEC Chairman Gary Gensler, in a statement.
“Not only did Zhao and his platform know the rules, but he chose to deliberately circumvent them, putting clients and investors at risk,” he explained.
Gensler months ago adopted a punitive approach with major cryptocurrency platforms that are not registered with the Securities and Exchange Commission.
In the absence of a vote on a regulatory framework in Congress, the cryptocurrency market is regulated by the Securities and Exchange Commission, which the CFTC objects to.
(AFP)
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