In a statement from the SEC, it was reported that Binance, the US-based BAM Trading, which operates Binance.US, and its founders, Zhao, were accused of various securities law violations.
BINANCE SURVIVED MANY DIFFERENT CHARGES
Pointing out that 13 charges were filed against Zhao with Binance entities, it was noted that these included the operation of unregistered exchanges and clearing agents, misrepresentation of trading controls and oversight on the Binance.US platform, and the unregistered supply and sale of securities.
In the statement, Zhao and Binance claimed that US customers were restricted from trading on Binance.com, but in reality violated their own controls to allow highly wealthy US customers to continue trading on Binance.
CLAIMS THAT BILLIONS DOLLARS HAVE BEEN SENT TO A DIFFERENT COMPANY
In the statement, which alleged that Zhao and Binance secretly controlled the operations of the Binance.US platform behind the scenes, the SEC also said that Binance mixed billions of dollars with customer funds and secretly sent them to a separate company called Merit Peak Limited, which is controlled by Binance founder Zhao. alleged.
“WE WILL STRONGLY DEFEND OUR PLATFORM”
In Binance’s statement, it was claimed that the SEC had been actively cooperating in its investigations from the very beginning, but despite all efforts, the SEC abandoned the negotiation process and acted unilaterally.
It was argued that the SEC’s refusal to engage effectively also demonstrates the Commission’s conscious refusal to provide the digital asset industry with much needed clarity and guidance.
Underlining that all claims that user assets on the platform are at risk are completely false, the statement said, “All user assets on Binance and Binance-affiliated platforms, including Binance.US, are safe and secure, and we will strongly defend ourselves against any claims to the contrary.” expression was used.
Emphasizing that it will continue to cooperate with regulators and policy makers in the US and around the world, it was stated that it will work with industry partners to protect this important technology from misguided lawsuits.