Last Minute Statement from Binance CEO: This Trailer!

There was a development that shook the crypto money market today. The SEC has launched an investigation into the world’s largest crypto exchange Binance. “This is an attack on the entire industry,” the stock market CEO replied.

13 accusations from SEC against Binance!

As you follow on Kriptokoin.com, the global cryptocurrency market witnessed a big sell-off on Monday. The cumulative digital asset market cap fell sharply by more than 5%, losing more than $53 billion in just 1 hour. This big sale comes after the US Securities and Exchange Commission (SEC) took legal action against the world’s largest crypto exchange Binance.

The US SEC has filed a lawsuit against Binance and its co-founder, Changpeng Zhao (CZ), on 13 different charges. The commission alleged that the defendants had mixed up billions of dollars’ worth of user funds. He underlined that the money was sent to a European company controlled by CZ. The commission stated that Binance created the US gun Binance.US to protect the exchange and its CEO. This was done to distort law enforcement. However, the SEC named Binance an unregulated international exchange.

Meanwhile, the US SEC highlighted BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI as Securities in its complaint. He also accused Binance.US of providing their trading. Binance CEO CZ described the allegations initiated by the commission as “an attack on the entire industry.” That’s why he gave the message that we are strong together.

BNB price crashed with SEC lawsuit!

In the midst of the legal battle, Changpeng Zhao assured users of an official response after receiving the complaint. It also emphasized the continuity of operations, including cryptocurrency withdrawals and deposits. However, the price of Binance’s native token BNB dropped sharply by 8% just minutes after the news broke. Specifically, the SEC’s lawsuit against the crypto exchange claims that both BNB and the BUSD stablecoin are unregistered securities.

Moreover, the repercussions of the SEC lawsuit extend beyond Binance alone. Major cryptocurrencies such as Bitcoin, Ethereum, and Litecoin also fell in price. Bitcoin fell by about 3.6%, while ETH witnessed a drop of 3%. Crypto analysts and the wider crypto community expect more price drops as details of the SEC and Binance lawsuit emerge. This adds more pressure to the already bearish market momentum.

Binance officially responds to SEC lawsuit

In a statement, Binance expressed disappointment with the US SEC’s decision to file a complaint against the exchange seeking immediate assistance. Binance emphasized that it is actively trying to cooperate with the SEC and reach an agreement regarding the agency’s previous investigations into the crypto exchange.

However, Binance noted that the SEC’s complaint points to a deviation from the cooperation process as the agency has chosen to unilaterally file a lawsuit. The exchange claimed that the SEC preferred sanctions and litigation rather than taking the thoughtful, nuanced approach required by the dynamic and complex nature of the technology. While discussing the SEC’s accusations, the Binance team stated:

While we take the SEC’s allegations seriously, they should not be the subject of an SEC enforcement action, let alone an emergency. We intend to strongly defend our platform.

One of the key allegations in the SEC’s complaint was that Binance’s practices exposed client funds to risk. Accordingly, the complaint states that for their complete disregard for federal securities laws and the protections they provide, “Defendants have enriched themselves by billions of US dollars while putting investors’ assets at significant risk.”

SEC chief targets Binance

Meanwhile, SEC chairman Gary Gensler released a statement on the SEC’s official website. Accordingly, the SEC alleges, under 13 headings, that Binance and CZ have engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and deliberate evasion of the law. Gensler continues his statements in the following direction:

“CZ and Binance misled investors about their risk controls. He also played with trading volumes. Moreover, they tried to hide who runs the platform, how the affiliate market maker trades manipulatively, even where and with whom investor funds and crypto assets are held. They tried to circumvent US stock laws by announcing bogus rules that they didn’t actually use. They did this to keep wealthy US customers on their platform. People should stay away from investing their hard-earned money on these illegal platforms.”

In the midst of these developments, CZ made a post on the SEC’s classification of 12 cryptocurrencies as “securities”, “A fragment of what happens next…”. However, he later deleted this post.