After the CFTC, Gary Gensler’s Securities and Exchange Commission (SEC) is attacking Binance and its CEO Changpeng Zhao head-on, accusing them of securities fraud, among other things. CZ communicated following the news, stating that the media had been informed before him and that he and his teams were looking into the situation.
The SEC takes on Binance head-on
The Securities and Exchange Commission (SEC)under the leadership of its president Gary Gensler, sues Binance and its CEO Changpeng Zhao over securities fraud allegations and for allowing certain US customers to use Binance rather than Binance US, its US subsidiary.
The information was first revealed by Bloomberg, which shared the complaint document issued by the SEC. The regulator accuses the CZ platform of having allowed the trading of “securities” (or security), a very often controversial subject in the United States given the regulatory vagueness that prevails there.
🚨 The SEC is suing @cz_binance And #binancein particular for having allowed the trading of “securities”.
The cryptocurrencies cited as such are the following: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.
—Cryptoast (@CryptoastMedia) June 5, 2023
As such, the following cryptocurrencies are treated as securities in the SEC complaint: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.
The entire crypto market turned red following the news, led by Bitcoin (BTC) which lost 5% over 24 hours. Unsurprisingly, the other tokens mentioned also fell sharply, in particular the BNB (the Binance token) which lost 8.6% over 24 hours.
Article being updated
👉 On the same subject – United States: finally a clear differentiation between security and commodity for DeFi tokens?
Discover ZenGo
$10 Bitcoin bonus from $200 deposit 🔥
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.