Binance and its chief executive Changpeng Zhao, were accused of breaking U.S. rules, says Securities and Exchange Commission. Read on
In a case filed in U.S. federal court on Monday, the U.S. Securities and Exchange Commission alleged that the firm flouted investor protection rules by operating unregistered exchanges, misrepresenting trading controls and selling unregistered securities, among other violations.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter.
A representative for Binance didn’t immediately respond to a request for comment. On Twitter, Zhao said his team would review the complaint.Article content The case follows a lawsuit from the U.S. derivatives watchdog in March that alleges Binance and Zhao routinely broke its rules. At the time, the exchange and Zhao defended their compliance efforts and called the lawsuit by the Commodity Futures Trading Commission disappointing, while also pledging to keep working with regulators.
The SEC has for months been probing whether Binance illegally sold digital coins as the exchange was getting off the ground in 2017. The token, which is known as BNB, is now among the world’s largest. A virtual currency may fall under the SEC’s remit if investors buy it to fund a company or project with the intention of profiting from those efforts. That determination is based on a 1946 U.S. Supreme Court decision defining investment contracts.
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