The Securities and Exchange Commission (SEC) of the United States has filed a complaint against Binance, a cryptocurrency exchange, alleging that the company has violated federal securities laws.

According to the complaint, the SEC claims that Binance, recognized as the largest cryptocurrency exchange platform in the world unlawfully solicited investors from the United States to engage in trading crypto asset securities on its platforms, namely and Binance.US. 

The allegations state that Binance conducted unregistered sales and offers of securities while providing false information to investors about the monitoring and regulation of manipulative trading activities.

As stated in the SEC's claim, Binance and its subsidiary, BAM Trading, operated as an exchange, broker-dealer, and clearing agency without obtaining proper registration from the SEC. 

The commission further alleges that Binance conducted unauthorized offers and sales of its own cryptocurrency assets, along with profit-generating initiatives and investment plans. 

The specific focus of the charges revolves around Binance's BNB and BUSD cryptocurrencies, as well as the BNB Vault and Simple Earn programs, in addition to a "staking" investment scheme offered on the Binance.US Platform. 

The defendants are accused of withholding essential information from investors concerning these securities and programs, depriving them of pertinent details.

Additionally, the complaint alleges that Binance and BAM Trading made false statements regarding the safeguards in place on the Binance.US platform, enabling them to raise substantial funds from private investors. 

The SEC contends that Binance intentionally evaded U.S. laws and regulations by devising a covert strategy to circumvent registration requirements. 

The filed charges quote Changpeng Zhao, the CEO of Binance, who acknowledged that the company did not wish to be held accountable for these actions. Furthermore, the Binance Chief Compliance Officer (CCO) revealed that, while they could not openly cater to U.S. users, they intended to find alternative methods to attract them.

In its response to the SEC's complaint, Binance conveyed its disappointment and underscored its full cooperation with the SEC's investigations. Binance stated that it had actively participated in extensive discussions towards a settlement, but the SEC opted for unilateral action. 

Binance expressed its intention to vigorously defend its platform and criticized the SEC's enforcement approach, highlighting the need for greater clarity and guidance within the digital asset industry. Binance further rejected the allegations suggesting that user assets on the Binance.US platform were in jeopardy, reassuring customers about the safety and security of their funds.

The SEC is pursuing multiple remedies and resolutions, which encompass seeking a permanent injunction, disgorgement of any unlawfully obtained profits, civil money penalties, and equitable relief.

Share this article
The link has been copied!