TRENDING:
BoJ Interest Rate
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
|

SEC believes Binance and ex-CEO Changpeng Zhao crimes were similar to fraud witnessed in FTX

  • The Wall Street Journal reports that US SEC wants to prove Binance and founder Changpeng Zhao committed an FTX-style fraud.
  • The financial regulator keeps pressing for evidence of potential fraud at Binance.US.
  • Specifically, the regulator alleges that Binance and CZ may have a backdoor to control assets stored on the Binance.US platform.
  • Meanwhile, the US DoJ has denied CZ from leaving the US before sentencing.  
SEC believes Binance and ex-CEO Changpeng Zhao crimes were similar to fraud witnessed in FTX
Lockridge OkothLockridge OkothFXStreet

Binance exchange and its founder Changpeng Zhao (CZ) remain as the focus of regulatory troubles in the US, with both the US Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) clamping down against the largest cryptocurrency exchange by trading volume.

Also Read: BNB price loses key support as US DoJ calls Binance CEO Changpeng Zhao a flight risk

Binance and its founder may have committed FTX-style fraud, SEC pushes

Binance and its founder CZ committed FTX-style fraud, according to the US SEC, which alleges that they may have a backdoor to control assets stored on the Binance.US platform, just like FTX and Sam Bankman-Fried did with Alameda Research.

Based on a report in the Wall Street Journal, the SEC is still looking for evidence to prove that Binance and CZ may have a backdoor to control assets stored on the Binance.US platform. The financial regulator started pursuing Binance and Binance.US in June on allegations that they operated illegal securities exchanges.

The lawsuit filed by the companies also depended on the financial regulator’s concerns about the potential for Binance to expropriate the American crypto assets in an FTX-style fraud. However, community members defend that Binance did not cause harm to retail investors like FTX did.

It all comes after CZ capitulated to the US SEC last week, pleading guilty to the levied charges including money laundering and breaking sanction laws. In the latest, the US DoJ has denied CZ from leaving the US before sentencing.  

Author

Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

More from Lockridge Okoth
Share:

Editor's Picks

Bitcoin Weekly Forecast: Binance security breach and hawkish Fed push BTC lower

Bitcoin Weekly Forecast: Binance security breach and hawkish Fed push BTC lower

Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.
Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
Bitcoin, Ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets

Bitcoin, Ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets

Crypto traders betting on higher prices had about $1.29 billion in positions forcibly closed over the past 24 hours, as the selloff following Binance’s security breach pushed bitcoin, ether and smaller tokens lower. Total liquidations reached $1.53 billion by Friday morning in Asia, according to CoinGlass. Long positions, bets that prices would rise, accounted for 83.8% of the total.
Crypto Today: Bitcoin, Ethereum, XRP sell-off cools after Binance security breach

Crypto Today: Bitcoin, Ethereum, XRP sell-off cools after Binance security breach

Cryptocurrency prices are on edge on Friday, with Bitcoin (BTC) delicately holding onto a short-term $78,000 support, Ethereum (ETH) edging lower near $2,200 and Ripple (XRP) attempting a recovery above support established at $1.20. The cooldown follows Binance, the largest crypto exchange, after it reported a hack that impacted about $6.3 billion.
Bitcoin: Binance security breach and hawkish Fed push BTC lower

Bitcoin: Binance security breach and hawkish Fed push BTC lower

Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.