According to the regulator, Binance has been mixing “billions of dollars” in user assets and covertly moving them to a different firm under CZ’s control. The accusations included misleading investors by misrepresenting the effectiveness of the company’s mechanisms for identifying and preventing manipulative trading.
Regulators further alleged that Binance had not done enough to prevent American investors from using its unlicensed exchange. Some of the key allegations in the lawsuit include:Zhao and Binance exercise control of the platforms’ customers’ assets, permitting them to commingle customer assets.Binance and BAM Trading were operating unregistered national securities exchanges, broker-dealers, and clearing agencies.
Binance and BAM Trading were involved in the sale of securities including Binance’s own crypto assets, including the exchange token,, a stablecoin, Binance USD , certain crypto-lending products, and a staking-as-a-service program. The list of 13 charges against the crypto exchange by the SEC comes within months of another lawsuit filed by the U.S Commodity Futures Trading Commission in March invoked various reactions from the crypto community, the most prominent being the divide over Binance’s approach and U.S regulators alleged “Operation Chokepoint 2.0”that alleged that Binance has incorporated a series of steps to evade regulators in the U.S. naming it as a “Tai Chi entity.
According to the regulator, binance has been mixing “billions of dollars” in user assets and covertly moving them to a different firm under cz_binance’s control.