In June, the SEC initiated a lawsuit against Binance and the company’s CEO, Changpeng Zhao, accusing them of improperly handling customer funds and breaching securities laws. Both Binance and Zhao have since moved to dismiss the case, challenging the SEC’s claims.
The legal dispute intensified when, on November 21, Binance agreed to a $4.3 billion settlement with the DOJ and other U.S. authorities. As part of the agreement, Binance made admissions that the SEC now argues bolster their case regarding financial misconduct and deceptive practices aimed at investors.
Efforts to secure comments from Binance representatives or Zhao’s defense attorney have been met with silence, leaving the public narrative in the hands of regulatory statements and court filings.
The ongoing litigation highlights increasing scrutiny by U.S. regulators on cryptocurrency exchanges and the broader digital asset industry, particularly concerning compliance with securities laws and consumer protection standards. The outcome of this case could set a precedent for future regulatory actions within the rapidly evolving crypto market.
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Source: Cryptocurrency - investing.com
