The Securities and Exchange Commission (SEC) is reportedly ramping up efforts to gather more evidence in its ongoing investigation into potential fraud at Binance US. This follows recent charges brought by the Department of Justice (DoJ) against Binance and its former CEO, Changpeng Zhao (CZ), who has pleaded guilty.
The SEC, according to WSJ, is actively searching for proof of potential backdoors that would allow Binance and its former CEO, Changpeng Zhao (CZ), to control assets on the Binance US platform.
Furthermore, the SEC is concerned about the possibility of Binance embezzling U.S. crypto assets using a style of fraud similar to what occurred with FTX. This ongoing scrutiny suggests regulatory concerns about the security and integrity of assets held on the Binance US platform.
The SEC’s lawsuit, filed in June, accuses Binance US of fraudulent activity that jeopardizes client funds. With Binance settling with the DoJ for $4.3 billion and CZ stepping down, the SEC aims to strengthen its case.
Despite the SEC’s claims, community members argue that Binance did not harm retail investors as FTX did. The DoJ has also denied CZ’s request to leave the US before sentencing, adding to the regulatory challenges faced by Binance and its founder in the cryptocurrency landscape.
Binance, one of the world’s largest cryptocurrency exchanges, and its founder Changpeng Zhao (CZ) have been embroiled in legal battles with U.S. regulators, particularly the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). This has resulted in a series of lawsuits, settlements, and fines.
The SEC filed a lawsuit against Binance, revealing 13 charges against the crypto exchange, including allegations of misleading investors, market manipulation, and misuse of customer funds.
It also accused Binance and CZ of engaging in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law. The agency claimed that Binance failed to register with the SEC, which has regulatory oversight of most cryptocurrencies.
The legal battles and settlements between Binance, CZ, and U.S. regulators have significantly impacted the cryptocurrency industry, reflecting the increasing regulatory scrutiny and enforcement actions against major players in the space.
CZ post-Binance resignation
Despite the actions of the Securities and Exchange Commission, the Binance founder is moving on and wants to try out new things. In an X post, the former CEO of the world’s largest cryptocurrency exchange revealed he will take a closer look at DeFi.
Additionally, he expressed a newfound interest in exploring the field of biotechnology, signaling a potential diversification of his focus and investments.