Cryptocurrency

The SEC’s filing against Binance alleges that the company “unlawfully engaged in unregistered offers and sales of crypto asset securities.”Analysts at Mizuho argued in a note to clients that the line suggests that the SEC views so-called Alt-Coins — or alternatives to top cryptocurrency Bitcoin — as, in effect, securities. This could mean that authorities will treat these coins in a manner more akin to stocks.The Mizuho analysts noted that SEC Chair Gary Gensler has recently said that “everything other than Bitcoin” should be considered a security.With this development in mind, the Mizuho analysts flagged that Alt-Coins may soon require registration with U.S. regulators, adding that “[t]he cumbersome process and risk of application denial for tokens may inhibit [Coinbase]’s ability to generate transaction revenue.”On Monday, the SEC brought forward thirteen civil charges against Binance, including claims that the company had diverted customer funds into a trading entity controlled by chief executive Changpeng Zhao. That trading firm had also engaged in manipulative tactics to inflate Binance’s trading volumes, the SEC added.The SEC complaint also said Binance had been running unregistered exchanges and had misrepresented its trading controls to authorities.Binance has denied the allegations, saying that user assets on its U.S. platform have never been at risk. But it noted that it is complying with SEC investigators. The value of Bitcoin hovered near a two-and-a-half-month low on Tuesday, while other coins like Ethereum and Cardano also dropped.Meanwhile, shares in Coinbase edged slightly higher in premarket U.S. trading. More

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The U.S. affiliate of Binance also saw outflows of $13M over the same timeframe, Nansen added.The move comes after the SEC brought forward thirteen civil charges against Binance, including claims that the company had diverted customer funds into a trading entity controlled by chief executive Changpeng Zhao. That trading firm had also engaged in manipulative tactics to inflate Binance’s trading volumes, the SEC added.The SEC complaint also said Binance had been running unregistered exchanges and had misrepresented its trading controls to authorities.”[W]e allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler in a filing.Binance has denied the allegations, saying that user assets on its U.S. platform have never been at risk. But it noted that it is complying with SEC investigators. More

LONDON/SINGAPORE (Reuters) -Investors have pulled around $790 million from the crypto exchange Binance and its U.S. affiliate in the last 24 hours, data firm Nansen said on Tuesday, a day after a top U.S. regulator sued both exchanges. Binance saw net outflows of $778.6 million of crypto tokens on the ethereum blockchain, with its U.S. affiliate, Binance.US, registering net outflows of $13 million, Nansen tweeted. Neither exchange immediately responded to a request for comment. The U.S. Securities and Exchange Commission on Monday sued Binance, its CEO Changpeng Zhao and the operator of Binance.US over what it called a “web of deception” to evade U.S. laws. The SEC alleged in 13 charges that Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict U.S. customers from its platform and misled investors about its market surveillance controls.The lawsuit, which cited a number of practices first reported by Reuters in a series of investigations into the exchange, marks the most significant step against a crypto company by the SEC in its sweeping crackdown on the industry this year. In statements on Monday, Binance said it had been cooperating with the SEC’s probes and had “worked hard to answer their questions and address their concerns”, including by trying to reach a negotiated settlement. “We intend to defend our platform vigorously,” it said in a blog.CRYPTO BLOWBitcoin steadied after falling more than 5% yesterday, its worst daily decline since April 19. The world’s biggest cryptocurrency was last at $25,723, flat on the day but pinned near a more than two-month low. “It’s another blow to the crypto industry and the crypto exchanges of the world,” said Tony Sycamore, market analyst at IG Markets, of the SEC suit. Binance’s BNB cryptocurrency, the world’s fourth-largest, fell 0.3% to a near three-month low of $277, after a 9.2% plunge on Monday, its worst daily fall since November.The SEC complaint is the latest in a series of legal headaches for Binance. The company was sued by the U.S. Commodity Futures Trading Commission (CFTC) in March for operating what it alleged were an “illegal” exchange and a “sham” compliance program. Zhao said the CFTC claims were an “incomplete recitation of facts.” More

On June 6, Kraken’s status page said, “Deposits and withdrawals are currently delayed. We will provide any updates as soon as possible.”Continue Reading on Coin Telegraph More

This lawsuit could delay the recovery in Bitcoin (BTC) and most major altcoins, as traders could prefer to remain on the sidelines for a few days until some clarity emerges. Another upcoming event that could keep the investors at bay is the Federal Reserve’s meeting on June 14.Continue Reading on Coin Telegraph More

The Securities and Exchange Commission (SEC) filed a complaint listing 13 charges against Binance, Zhao, and the U.S. arm of the world’s largest crypto exchange. The regulator alleged that Binance was operating a “web of deception,” by inflating its trading volumes, misusing customer funds and also lying to investors over its regulatory compliance.The move marks an escalation in the regulatory crusade against the crypto industry seen this year, coming just months after the U.S. Commodity Futures Trading Commission also accused Binance of similar violations.Crypto prices sank after the SEC’s announcement. Bitcoin fell 5.1% to a near three-month low of $25,753.1, while BNB, Binance’s native token, slid over 9%. The SEC complaint accused Binance of commingling user funds with a separate trading firm owned by Zhao, echoing the charges against now bankrupt exchange FTX, which had allegedly carried out a similar practice, which eventually led to its collapse in November.Binance said it “respectfully disagree(d)” with the SEC charges, and that it will defend its platform “vigorously.” Zhao also criticized the SEC action in a series of tweets. The SEC suit heralds more regulatory pain for the crypto industry, which has been reeling from increased scrutiny after a series of high-profile bankruptcies through 2022. Recently, the commission had also threatened action against Coinbase (NASDAQ:COIN) over noncompliance with securities laws. Coinbase shares slumped 10% on news of the Binance suit. Crypto prices crashed last year after the Federal Reserve began raising interest rates, bringing an end to the easy monetary environment that had initially fostered the industry.  The market has since struggled to recover even a measure of the record highs seen in 2021, and has traded largely rangebound in recent months.  More