Binance's CZ sued by SEC for breaking US Securities
Per Bloomberg
Binance Holdings Ltd.'s CEO, Changpeng Zhao, has been a prominent figure in crypto and is known as one the person who would've bought FTX upon its collapse but, as it did due diligence, found massive red flags within the country. Now, CEO CZ is being charged by the Securities and Exchange Commission for breaking US securities.
Although there was limited information available regarding the news, a report by CNBC noted that there were 13 charges that were filed against Binance's co-founder.
According to Coin Desk, the charges were related to allegations of federal securities law violations. It was also highlighted that Binance allegedly operated an unlicensed stock exchange.
An SEC representative said they couldn't comment on the existence or nonexistence of a potential investigation. Both the SEC and Binance didn't immediately return requests for comments by Coin Desk.
SEC: “We do not comment on the existence or nonexistence of a possible investigation or enforcement action,”
Recently, CZ tweeted out "4," which in crypto lingo, stands for fear, uncertainty, and doubt, otherwise known as "fud." He also gave a statement regarding how the system was still functional.
CZ: "...Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. We will issue a response once we see the compliant. Haven't seen it yet. Media gets the info before we do."
In February, it was reported that Binance actually had secret access to a Silvergate bank account that belonged to its purportedly independent US partner. The crypto exchange transferred $400 million from the account directly to a trading firm managed by CZ.
In November, CZ said that he was considering buying a bank as he was interested in either a minority investment or a full acquisition.
See flow at unusualwhales.com/flow.
Other News:
- Binance had secret access to a Silvergate, $SI, bank account belonging to its purportedly independent U.S. partner and transferred $400 million from the account to a trading firm managed by Binance CEO Changpeng Zhao
- Binance Founder 'CZ' Contemplates Buying a Bank
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