SEC Strikes! Binance and CEO CZ Face Crypto Charges (Patreon)

The TLDR

• The Securities and Exchange Commission (SEC) sued Binance, the world's largest cryptocurrency exchange, alleging that it operated an illegal exchange in the United States.
• The SEC also named Binance's founder and controlling shareholder, Changpeng Zhao, as a defendant.
• The SEC alleged that Binance and Zhao misused customer funds and even diverted them to a trading entity that Zhao controlled.
• The SEC also alleged that Binance sold cryptocurrencies that should have complied with investor-protection rules.
• The value of Binance's cryptocurrency, BNB, fell more than 5% after the announcement of the lawsuit.
• Bitcoin and Crypto is also falling.  Get your sniping rifles ready.

The lawsuit is a major setback for Binance, which has been trying to expand its business in the United States. The SEC's allegations could have serious implications for Binance, including fines, penalties, and even criminal charges.

The SEC law­suit also named Chang­peng Zhao, Bi­nance’s founder and con­trol­ling share­holder, as a de­fen­dant. The SEC said that Bi­nance and Zhao mis­used cus­tomers’ funds and even di­verted them to a trad­ing en­tity that Zhao con­trolled. That trad­ing firm, Sigma Chain, en­gaged in fraud­u­lent trad­ing that made Bi­nance’s vol­ume ap­pear larger than it ac­tu­ally was, the SEC said.

The Securities and Exchange Commission has sued Binance, the world’s largest cryptocurrency exchange, alleging the overseas company operated an illegal exchange in the U.S.

Thanks Sanjay for sharing.

May 23rd I warned "DO NOT HOLD BAGS ON BINANCE OR ANY OTHER EXCHANGE"  People accused me of over reacting!!!