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US SEC Probing If CZ Still Has Access To Binance US Funds: WSJ – Crypto News

Published

3 years ago

November 28, 2023

Dripp

In the context of Binance founder and former chief executive officer Changpeng ‘CZ’ Zhao’s pleading guilty to criminal charges by the United States Department of Justice (DOJ), the US Securities and Exchange Commission (SEC) continues to reportedly hunt for evidence that CZ still has access to Binance US user funds.

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US SEC On CZ Still Having Access To Binance US Assets

Recently, the Binance founder had resigned from the role of CEO as part of the settlement with the DOJ, which also included release from jail on a $175 million personal recognizance bond. CZ pleaded guilty to charges of defaulting in the form of operating an anti-money laundering system. Meanwhile, the US SEC is in the lookout for proof that potentially shows CZ could continue to have a ‘backdoor’ access to Binance US assets, according to a Wall Street Journal report.

In June 2023, the Commission filed a lawsuit against Binance alleging illegal operation of securities exchange, while at the same time investigating potential for a collapse similar to the November 2022 fallout of FTX. Earlier, CoinGape reported expert comments that said the US SEC could have a fresh array of evidence against the exchange, while arguing in its own lawsuit.

Meanwhile, Binance’s legal debacle coincides with the growth in stock price of its top competitor, Coinbase. The $COIN stock price reached around $121 on November 27, 2023, which is the new peak since as far as May 22, 2022.

What Next For Binance

Following CZ’s pleading guilty and exit as CEO, Richard Teng, the newly appointed CEO, pledged to enhanced regulatory compliance. This comes as a deviation from CZ’s leadership stance, with Teng wishing to work closely with regulators around the world and build a reputation around trust.

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