Home » Business » Binance, the World’s Largest Cryptocurrency Trading Platform, Sued by SEC for Violating US Law

Binance, the World’s Largest Cryptocurrency Trading Platform, Sued by SEC for Violating US Law

The US stock market watchdog SEC on Monday sued Binance, the largest cryptocurrency trading platform in the world, for violating US law. CEO Changpeng Zhao was also charged.

Documents filed by the SEC in Washington federal court show that there are a total of thirteen charges. Binance would have operated in the US without a license. The company is also accused of having created an “extensive web of deception”, including setting up “sham checks” in order to continue operating. Clients with a large portfolio could use a VPN connection to disguise the fact that they were trading from the US. Billions of dollars in funds were also reportedly transferred to Zhao’s European company. In addition, Binance is accused of market manipulation and Zhao is said to have traded cryptos himself.

In a statement, Binance states that it intends to “rigorously” defend its platform. Since Binance is not a US platform, the SEC’s actions will have only limited consequences anyway. In a tweet, it also called the lawsuit “unjustified”. On Monday, bitcoin fell to its lowest level in three months.

2023-06-05 18:58:35
#stock #market #watchdog #suing #Binance

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