©Reuters.
The United States Securities and Exchange Commission (SEC) continues its legal battle against cryptocurrency exchange Binance Holdings Ltd. citing a recent Department of Justice (DOJ) settlement as proof of its allegations. The SEC’s tough stance comes after Binance reached an important agreement with US authorities.
In June, the SEC filed a lawsuit against Binance and its CEO Changpeng Zhao, accusing them of mismanaging customer funds and violating securities laws. Both Binance and Zhao have since requested a dismissal of the case, disputing the SEC’s allegations.
The legal conflict intensified when, on November 21, Binance agreed to a $4.3 billion settlement with the Department of Justice and other US authorities. As part of the settlement, Binance made admissions that the SEC now says support its case regarding financial misconduct and deceptive practices toward investors.
Efforts to get comment from Binance representatives or Zhao’s defense attorney were met with silence, leaving the public narrative in the hands of regulatory filings and court filings.
The ongoing litigation highlights U.S. regulators’ growing focus on cryptocurrency exchanges and the broader digital assets industry, particularly with respect to compliance with securities laws and safeguarding standards. consumers. The outcome of this case could set a precedent for future regulatory actions within the rapidly evolving cryptocurrency market.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.