screenshot from twitter
Greetings to you all, and welcome to my blog once again. Today I will like to share something interesting and Some months ago, Binance U.S and CZ got a law suit from the SEC. To be precise, this action took place on June 5, 2023. The SEC claimed that Binance CEO and founder Changpeng Zhao, together with the Binance organization, had not been fair in their operations and services to the general public. They had made some moves that the SEC claims are unlawful and illegal under the securities and exchanges laws. The SEC said the above-mentioned entity and individual have violated the securities laws and regulations, hence processed some charges against them. These charges are about 21 different allegations in number.
For recall and clarification reasons, let me just throw a little more light on some of the allegations pounded on CZ and Binance U.S.
The SEC claims Binance and CZ have admitted not allowing Binance U.S. customers to trade on Binance.com, yet they secretly made way for them to trade on it. Meaning they were just playing on people's minds. They were trying to make it look as if they were restricting Binance U.S. customers from trading on Bincnace.com, but in reality, they were operating and trading just like any other customer.
Binance also had control over clients' assets, which they could make moves with at any time. This means Binance could divert or use customers assets for their own personal gains and profits. This is not something new to me because I know that's exactly what the traditional systems like the banks do, just that they are registered and allowed by the laws to do so.
Another charge is the fact that Binance and CZ violated critical registrations related to federal securities, which basically has to do with CZ, Binance, and BAM trading with unregistered security exchanges; these bodies also traded with unregistered sales offers involving Binance's own crypto assets, including BNB, BUSD and some other crypto assets. They also allowed crypto lending services and staking of some crypto assets, which were operations not registered under the SEC.
In a nutshell, the SEC claims Changpeng Zhao and Binance misled the general public through deceitful acts by running unregistered security companies and crypto exchange platforms for their own selfish gains.
To cut long story short, there were several allegations and charges placed on Binance and CEO Changpeng Zhao. This ended up in a court battle between the SEC and Binance.
For couple of months now, these two organizations and individuals bodies involved have been battle it out in the law court.
Shockingly, just yesterday, there was a shocking news; CZ and Binance were fined an amount of 4.3 billion dollars of which CZ has agreed to comply too. This was just to settle case with the US Government and the SEC. This was a big blow not to only CZ and Binance but to the crypto community as whole.
We all know how Binance has been of benefit to the whole world serving as the Bank of Crypto. Making it possible for individuals to meet and trade their cryptocurrencies. Binance has been a great employer over a decade now and still the leading name when it comes to cryptocurrency and blockchain technology. I never thought this was possible in the initial stages, but it looks like Binance might end up just like FTX.
The worst part is the possibility of Binancr CEO Chengpeng Zhao serving a prison term. This is not yet confirmed, but looking at all the charges placed against him, if care is not taken, he could be put behind bars or, better still, fined another huge sums of money. Could he truly be sent to prison to serve a jail term, or will he come out of the allegation and charges, or even be pardoned? Feel free to share your thoughts on this tragic news.
I saw a post on Twitter which said the ceo of Binance is resigning
Yes it’s very true and the new CEO is Richard Teng..
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