Tech news
Wednesday, Sep 27, 2023

SEC Sues Binance, Changpeng Zhao for Securities Law Violations; Alleges Fraud in ICO and Stablecoin Offerings

SEC Sues Binance, Changpeng Zhao for Securities Law Violations; Alleges Fraud in ICO and Stablecoin Offerings

The U.S. Securities and Exchange Commission (SEC) has sued Binance, Binance.US, and Binance CEO Changpeng Zhao for violating federal securities laws.
The SEC alleges that Binance and Zhao offered unregistered securities in the form of the BNB token and Binance-linked BUSD stablecoin, and that Binance's staking service violated securities laws.

The suit also alleges that Binance allowed commingling of customer funds, and that Zhao controlled both Binance.US and a company that inflated Binance.US's trading volume.

The SEC claims that Binance allowed U.S. persons to trade on its platform despite saying it didn't, and that Binance helped high-value U.S. customers circumvent controls to avoid being held accountable.

The SEC also alleges that Binance's Chief Compliance Officer acknowledged that the platform was operating as an unlicensed securities exchange in the U.S. The SEC further alleges that Binance and Zhao transferred investors' assets and commingled and diverted them, and that Zhao personally received $62.5 million from a Binance bank account.

The SEC also claims that Binance allowed Sigma Chain, a company controlled by Zhao, to buy a yacht using funds from a customer account.

Binance and its founder Changpeng Zhao have been sued by the U.S. Securities and Exchange Commission (SEC) for allegedly defrauding investors in the company's initial coin offering (ICO) and engaging in other securities law violations.

The SEC also alleges that Binance and Zhao made false and misleading statements to investors, failed to register the company's ICO as a securities offering, and violated rules regarding the offer and sale of securities.

The suit also names Binance's U.S. subsidiary, Binance US, and its former CEO, Brian Brooks, as defendants.

The SEC's lawsuit comes after the U.S. Commodity Futures Trading Commission (CFTC) brought similar allegations against Binance and Zhao in March 2022.

The SEC's Chair, Gary Gensler, said in a press release that Binance and Zhao engaged in "an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law."

Related Articles

FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts