New York, (EFE).- The United States Securities Market Commission (SEC) sued Binance, the world’s largest cryptocurrency platform, on Monday for violating a series of regulations in the country with its operations
The lawsuit, filed in federal court in Washington, accuses the company of improperly managing user funds and lying to investors and regulators, among other things.
The SEC filed a total of 13 charges against Binance and its founder, Changpeng Zhao, accusing them of blatantly ignoring US stock market laws and earning billions of dollars in exchange for putting their assets at “significant risk”. customers.
Binance evaded the rules
“Zhao and the Binance entities not only knew the rules, but they consciously decided to evade them and put their clients and investors at risk, all in an attempt to maximize their own profits,” the president of the regulatory body said in a communication. American, Gary Gensler.
In a 136-page lawsuit, the SEC denounces that Binance has illegally offered to buy and sell crypto assets in the US on platforms not registered in the country and lying about its alleged surveillance and control systems.
In addition, it ensures that the company has improperly managed client funds, even diverting them without their knowledge to another independent firm, but also in Zhao’s control.
“Network of deceit”
According to Gensler, the Chinese-born billionaire and Binance created a “wide web of deception, conflict of interest, concealment, and calculated evasion of the law.”
Through Twitter, Zhao said the company would have a response to the lawsuit once it had time to review it, and said it has taken steps to ensure all systems remain stable, including withdrawing and depositing funds.
The action that was presented this Monday by the SEC is added to another one announced last March by the Commodity Futures Trading Commission (CFTC), which regulates futures and options markets and which accused the company of “numerous violations” of financial and regulatory standards in the country.
Chinese origin
Founded in China in 2017, Binance left the country before the Beijing government regulated cryptocurrencies and set up headquarters in the Cayman Islands, although it has subsidiaries operating in many countries.
Zhao, of Chinese origin but a Canadian national, was ranked 19th in the 2022 edition of Forbes’ list of the world’s richest people.
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