The SEC also alleges that cryptocurrency BNB and stablecoin BUSD are securities. The charges also included misleading investors about Binance’s systems to detect and control manipulative trading regulators say that the exchange didn’t take proper steps to restrict U.S.-based investors from accessing its platform. The filing states that in December 2018, Samuel Lim, Binance’s CCO at the time, said to another compliance officer, “we are operating as a fking unlicensed securities exchange in the USA bro.” The international exchange claimed in a post on Monday it actively cooperated with the SEC’s investigations and recently engaged in discussions to reach a “negotiated settlement to resolve their investigations,” however the SEC “abandoned that process and instead chose to act unilaterally and litigate.” Separately, Binance.US tweeted that it thinks the SEC “lawsuit is baseless” and called for action from the crypto industry to push back against the claims. However, behind the scenes, Zhao and Binance were allegedly “intimately involved” in directing the trading entity’s business operations and providing crypto-related services to the Binance.US platform, which claims it’s an independent exchange, according to the filing. “Zhao and Binance created BAM Management and BAM Trading in the United States and claimed publicly that these entities independently controlled the operation of the Binance.US platform.” The regulator filed 13 charges against the defendants.īinance and BAM Trading were under Zhao’s leadership and control and operated without registering with the SEC, the agency stated. An unconfirmed number of layoffs was seen at the company following the SEC's June suit, according to Reuters.īinance.US maintains that it operates independently from Binance, but Zhao is the majority owner for both.The SEC is accusing Binance, the world’s largest crypto exchange, its CEO Changpeng Zhao and BAM Trading and BAM Management, of lying to regulators about its operations, according to a federal suit filed Monday. This week’s job cuts are not the first seen at Binance.US this year. operations as it battles the SEC's charges. Weeks later, a court deal allowed the cryptocurrency exchange to continue to U.S. The SEC also sued Binance.US operator BAM Trading Services. In a statement at the time, SEC Chair Gary Gensler said that Zhao and Binance “engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law" - adding that “the public should beware of investing any of their hard-earned assets with or on these unlawful platforms.” And in June, the SEC accused Binance and its owner of misusing investor funds, operating as an unregistered exchange and violating a slew of federal securities laws. In March, the Commodity Futures Trading Commission sued the company with charges of numerous exchange violations.
and this is an unfortunate example of that."īinance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao have faced extensive litigation from U.S.
Securities and Exchange Commission earlier this year, arguing that the agency's “aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences. “The actions we are taking provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange," the spokesperson said in a statement.īinance.US also pointed to action taken by the U.S.
Shroder's departure coincides with the elimination of about one-third of Binance.US’s workforce, with layoffs impacting more than 100 employees.
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