SEC Investigating Binance.US Since 2020
WASHINGTON D.C. – Court filings disclosed Wednesday show the U.S. Securities and Exchange Commission (SEC) has been actively investigating Binance.US since 2020. The regulatory body presented substantial evidence suggesting that the popular cryptocurrency exchange has engaged in profiteering amounting to hundreds of millions of dollars.
The SEC's lawsuit targets Binance's U.S. and global entities and its CEO Changpeng "CZ" Zhao. The allegations revolve around the operation of an unregistered securities exchange, as Binance.US enabled individuals to trade cryptocurrencies. Consequently, the SEC has taken measures to freeze Binance.US assets in order to mitigate potential risks.
In response to the lawsuit, Binance.US issued a statement on Monday via Twitter, asserting that it had engaged with the SEC in good faith for almost two and a half years. The cryptocurrency exchange categorically denied the allegations, deeming the lawsuit "baseless" and claiming it lacks justification based on the facts, the law, and even the SEC's precedent.
