With the increased adoption of cryptocurrencies, regulatory scrutiny has become an integral part of the industry’s growth and development.
But unlike regulators in the UAE, for example, who seek to subsidize the technology, the US Securities and Exchange Commission has taken a hostile step against the cryptocurrency space.
The Securities Commission announced a lawsuit against the US arm of the Binance platform.
The lawsuit against Binance sparked interest and controversy within the cryptocurrency community between supporters and opponents.
In this article we will delve into the details of the lawsuit and the charges against the platform and explore the implications for both Binance and the wider cryptocurrency industry.
Binance case details
On June 5, the Securities and Commodities Authority announced the lawsuit against Bam Trading, Bam Management, and CZ.
It is worth noting that Bam Management and Bam Trading are the founding and managing companies of the US Binance platform.
The SEC Claims Binance Violated Securities Laws The lawsuit filed by the SEC laid out 13 charges against Binance.
Accusation of BNB for unregistered sale and offer of Binance coin
The SEC claims that Binance offered and sold BNB (Binance Coin) without registering it, which means it violated securities laws.
The SEC also claims that Binance promoted the sale of the cryptocurrency it classified as a security within the US using various means of communication such as mail.
An accusation of the unregistered sale and offer of Binance coin BUSD
The SEC claims that Binance sold and offered BUSD coin that was classified as a security.
BNB Vault and Simple Earn are accused of offering unregistered Binance services
The SEC claims that Binance offered Simple Earn and BNB Vault services without registering it with the SEC.
Bam Trading accused the company of offering unregistered staking services
BAM Trading (the company that operates the BinanceUS platform) has been accused of offering and selling private staking services without providing a valid registration statement.
Not registering as an exchange for the Binance platform Accusing a company
The SEC claims that Binance operated the Binance.com platform with the definition of an “exchange” without registering to conduct securities transactions or obtaining an exemption from such registration.
By not registering as a broker/dealer for the Binance platform
The SEC claims that Binance is a classified trader/broker but has not registered or obtained an exemption from registering with the SEC.
By not registering as a clearing agency for the Binancecom platform, accusing the platform
The SEC alleges that Binance had the responsibilities of a clearing agency in relation to securities which required it to register with the SEC.
BinanceUS and Bam Trading were accused of not registering as an exchange on the Binance platform
The SEC claims that to operate a US platform and offer securities trading, both Binance and BAM Trading must register with the SEC or obtain an exemption from registration.
Bam Trading US is accused of not registering as a broker on the Binance platform
The SEC alleges that BAM Trading operated the Binance.US platform classifying it as a broker and promoting the purchase or sale of securities without its registration or exemption.
Bam Trading is accused of not registering as a Binance clearing agency
The SEC alleges that by operating the US platform, Binance and BAM Trading engage in the performance of clearing agency functions with respect to securities requiring registration or obtaining an exemption from the SEC.
Changpeng Zhao controlled an indictment stand
The SEC alleges that CZ directed and directed operations at Binance in violation of securities laws.
Chanpegn Zhao accused of violations of the Binance platform and Bam Trading in his capacity as the controller of BinanceUS
The SEC alleges that CZ used its authority to manage both Binance and Bam Trading by directing actions that resulted in violations of securities laws by Binance and Bam Trading.
Bam Trading and Bam Management have charges against each
The SEC alleges that by making materially false or misleading statements to investors and engaging in fraudulent business, transactions, or practices, Bam Management and BAM Trading obtained money or property directly or indirectly through the offering or sale of securities.
