While Binance law suit by SEC is still fresh, lets take sometime to look into the SEC accusation. Remember SBF? The former CEO of FTX that got arrested few months ago, the guy that declared bankruptcy, the guy that mismanaged investors and customers funds and became illiquid, seems like he is being compared to the CEO Binance and people might think that he might just be bigger than SBF in terms of customers funds mismanagement. The SEC lawsuit to Binance is no news right? You must have seen it every where? But do you know what the details entails?
So from what I have been reading regarding the case, SEC thinks that Binance offered U.S residence security without going through the proper way which is the proper regulators. I think a statement CZ was used in the past was used against him as well. Doesn’t stop there, remember BNB vault and staking feature found on Binance, they are also considered securities. This is not the aspect where some people think CZ might just be bigger than SBF, its from customers funds mismanagement. Out of all the accusations that have been thrown at Binance and CZ, CUSTOMERS funds mismanagement is a new accusation. That was SBF job, remember when it was discovered that SBF has been using customers funds to trade by sending customers funds to his trading company Alameda.
Well, SEC thinks CZ is doing the same, by sending funds to a trading company own by CZ, this trading company is called Merit Peak, a market maker company that uses huge funds to manipulate the market, just like Alameda. If this is true about CZ and Binance then this will look really bad for Binance. Especially after what CZ said about FTX and how irresponsible he was to mismanage customers funds. I really dont know how true this is, but from a blog I read, this is just an allegation the SEC is slamming on Binance. Remember what happened to FTX after they were discovered to be mismanaging customers funds through Alameda? People started withdrawing and that caused the company to crash.
Binance is the biggest crypto exchange in the world, I really hope that SEC is wrong because this will negatively impact the crypto if it turns out to be true. We saw what happened with the crypto market after FTX saga, expect Binance to be way worse if it ever turn out to be true.
Posted Using LeoFinance Alpha
I hope it's just a framing and not a reality. CZ should be smarter than that. Crypto is already reeling, no need of another blow.
I sure hope not. I'm done with crypto winter.
Same here, I am tired of worrying about the market that I can’t control.