How does BINANCE react?
The 136-page filing alleges that Binance and Binance US were engaged in the offering and sale of unregistered crypto-asset securities and acting as an exchange, broker-dealer, and dealer. clearing without pre-registration.
Among their illegal securities offerings are profit-making schemes called “BNB Vault” and “Simple Earn”, along with native tokens BNB and stablecoin BUSD. Currently, BNB ranks 4th in terms of market capitalization in cryptocurrencies, and Binance holds a significant portion of its total supply.
According to the indictment, without the usual oversight from exchanges and registered broker-dealers, the SEC said that Binance also moved and mixed customer assets in a way that companies manage. it is impossible to do.
For example, the agency said that Binance and Binance US have mixed billions of dollars in user assets from both platforms into one entity called “Merit Peaked Limited”, which is run by both Binance and CEO Changpeng Zhao (CZ). control.
That asset was then transferred to a third party, similar to what FTX’s previous owner Sam Bankman-Fried did at the collapsed exchange.
Finally, the SEC alleges that an entity controlled by Zhao called “Sigma Chain” engaged in money laundering at Binance US to increase trading volume and inflate the value of certain assets on the platform.
How does BINANCE respond?
Binance says that all user assets on its platform, including Binance and Binance.US, are protected and secure, and that it is committed to vigorously defending against any allegations.
In a public response letter, Binance refuted the allegation and alleged that the SEC did not prioritize protecting investors but instead focused on establishing control in the cryptocurrency sector.
Furthermore, Binance refuted Reuters’ claims last month that it had mixed user funds with company funds. They say any “mixing” is just the process of converting user deposits from USD to BUSD, Binance’s stablecoin.
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