The world’s largest crypto exchange was sued for multiple securities law violations by the U.S. Securities and Exchange Commission on Monday. Source
Binance Endures $69M in Net Outflows Within an Hour, Amid SEC Charge: Nansen
Tag: SEC
SEC sues Binance in US District Court for unregistered securities operations
The United States Securities and Exchange Commission (SEC) filed suit against Binance, its U.S. platform and CEO Changpeng Zhao (CZ) in the District Court for the District of Columbia on June 5. 4. 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. — CZ Binance (@cz_binance) June 5, 2023 The U.S. regulator pressed 13 charges against Binance, including unregistered offers and sales of the…
SEC Sues Crypto Exchange Binance, CEO Changpeng Zhao, Binance.US Over Multiple Securities Violation Allegations
Binance, Binance.US and CZ offered unregistered securities to the general public in the form of the BNB token and Binance-linked BUSD stablecoin, said the suit, which also alleges that Binance’s staking service violated securities law. There are similar charges against BAM Trading – the operating company for Binance.US – and Binance itself, including failure to register as a clearing agency, failure to register as a broker and failure to register as an exchange. Source
Pro-XRP lawyer tips outright SEC victory at ‘less than 3%’
Pro-XRP lawyer John Deaton has tipped less than a 3% chance for the United States Securities and Exchange Commission to score an outright win against Ripple, as an end to the long-running lawsuit draws closer. The CryptoLaw founder has been a vocal advocate for Ripple against the SEC, which filed a lawsuit against the company in December 2020, alleging that the sale of its XRP (XRP) token represented an unregistered securities offering. In a June 3 episode of The Good Morning Crypto podcast, Deaton said he tipped a 25% chance…
US lawmakers aim for crypto regulatory clarity with proposed bill putting the screws to SEC
Lawmakers with the United States House Financial Services Committee and House Agriculture Committee have released a draft discussion offering certain crypto assets a pathway to being labeled digital commodities. According to a discussion draft published on June 2, lawmakers proposed “establishing a functional framework” aimed at providing regulatory clarity for crypto firms in the United States. The draft bill would prohibit the U.S. Securities and Exchange Commission (SEC) from denying digital asset trading platforms to register as a regulated Alternative Trading System and allow such firms to offer “digital commodities…
U.S. House Republicans Push for Crypto Oversight With Bill to Make SEC Play Ball
But as a product of negotiations between Rep. Patrick McHenry (R-N.C.), the chair of the financial panel, and Rep. Glenn “GT” Thompson (R-Pa.), the chair of the agriculture committee, this bill doesn’t yet represent the needed input from their Democratic counterparts. It’s a “discussion draft” meant to start the conversation, according to a senior policy staff familiar with the legislation, who said the chairs are hoping Democrats come up with their own version and the sides can start finding common ground. Source
SEC accepting ethereum for penalty payment
The U.S. Securities and Exchange Commission (SEC) is accepting ethereum as part of a penalty payment in a recent fraud case, while maintaining the classification of the digital asset as a security. In an unexpected twist of events, the Securities and Exchange Commission (SEC), the federal agency responsible for overseeing and regulating the securities industry, has started accepting penalty payments in ethereum (ETH) even as they continue to categorize the cryptocurrency as a security. In a recent criminal case, Ishan and Nikhil Wahi pled guilty to conspiracy to commit wire…
A House Bill Would Make It Harder for the SEC to Argue Crypto Tokens Are Securities
The distinction is important because today, unlike the initial coin offerings (ICOs) of the past, many development teams that are interested in launching a token in the U.S. raise funds in SEC-compliant securities offerings using Regulation D (Reg D) offerings, an exemption from SEC registration typically associated with a public offering. In these private offerings, rather than sell to the public, issuers sell to “accredited investors” who acquire future token interests through purchase agreements (e.g. SAFEs or SAFTs) that call for token delivery upon certain conditions being met, such as…
Former SEC Chief Warns Crypto Influencers against Price Manipulations
The former SEC chief hinted that influencers adopt various strategies to deceive and mislead their followers into making uncalculated investment decisions. The US Securities and Exchange Commission (SEC) is increasing its efforts to regulate and enforce compliance among crypto influencers, as former SEC Chief John Reed Stark issues a stern warning about potential prosecutions. In a Twitter post on Wednesday, Stark, who headed the SEC’s Internet Enforcement unit for 11 years, cautioned those social media personalities in the crypto space who have endorsed dubious projects and engaged in price manipulation…
Former SEC chief warns influencers about prosecution for crypto price manipulation
The United States Securities and Exchange Commission (SEC) is pursuing crypto influencers who have promoted scam projects and are found to be manipulating the prices of certain tokens via social media. Former SEC chief John Reed Stark took to Twitter to warn crypto influencers to be ready to face prosecution. Attention all crypto promoters who use social media to manipulate the price of crypto-securities: Fail not at your peril. Not only will you eventually get caught, but your prosecution will also be like shooting fish in a barrel. Whether manipulating…