SEC Probing Binance.US for Evidence of Potential Fraud, Despite Guilty Pleas From Binance and CZ: Report – Crypto News – Crypto News
Connect with us
SEC Probing Binance.US for Evidence of Potential Fraud, Despite Guilty Pleas From Binance and CZ: Report SEC Probing Binance.US for Evidence of Potential Fraud, Despite Guilty Pleas From Binance and CZ: Report

others

SEC Probing Binance.US for Evidence of Potential Fraud, Despite Guilty Pleas From Binance and CZ: Report – Crypto News

Published

3 years ago

on

The U.S. Securities and Exchange Commission (SEC) is reportedly still investigating Binance CEO Changpeng Zhao and the company’s US branch despite both parties already pleading guilty to other charges levied by the Department of Justice (DOJ).

According to a new report by The Wall Street Journal, both Binance and Zhao will be probed for evidence that they still have backdoor access to control Binance.US’ crypto assets.

The SEC originally sued Binance in June, claiming that the crypto exchange was offering illegal securities. Earlier this month, Zhao pleaded guilty to separate charges of failing to maintain adequate anti-money laundering protocols, causing him to step down from his position as the firm’s chief executive.

Furthermore, Binance agreed to pay a $4.3 billion fine to the DOJ.

However, the DOJ’s complaints did not include accusations that Binance could control its customers’ funds.

During a recent meeting, Binance.US attorneys asked U.S. Magistrate Judge Zia Faruqui to think about dropping its investigation. Faruqui responded by saying that he believes Zhao’s guilty pleas may be enough to stop the probe.

As stated by Faruqui to the SEC’s lawyers, according to The Journal,

“At some point, I have to make a leap of faith and say enough is enough.”

Binance attorney Matthew Laroche goes on to say that the firm is suffering financially due to the SEC’s lawsuit, according to the report. He says that the average monthly value of Binance.US assets is down almost 90%, and that the company has lost almost half of its monthly users since the SEC filed its case.

As stated by Laroche,

“The SEC has no evidence that assets have been misused in any way.”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending