The U.S. Securities and Exchange Commission (SEC) has taken legal action against Binance and its CEO, Changpeng Zhao (CZ).
According to a Bloomberg article, the SEC has filed a lawsuit against Binance Exchange and CZ for violating U.S. securities laws. The lawsuit covers both the foreign and U.S. activities of the trading platform.
The SEC has made 13 accusations against Binance, including operating in the U.S. and misleading customers. The markets regulator has noted that other cryptocurrencies traded on Binance include Cardano (ADA), Polygon (MATIC), and Solana (SOL).
The lawsuit has caused a stir in the cryptocurrency community, with the price of Binance Coin (BNB) taking a hit. BNB’s value is currently at $289, a 5.47% decrease in the last 24 hours.
CZ responded to the situation in a tweet, assuring his more than 8.4 million followers that specialized teams are in place to ensure smooth deposits and withdrawals.
However, he did not provide many details. CZ, who is rumored to be leaving the company soon, stated that he and his team have not yet seen the complaints. He mentioned that they will respond once they receive them from the market regulator.
The SEC’s crackdown on Binance is seen as an expected move by many business insiders who have been observing the industry this year. The SEC has already filed lawsuits against several cryptocurrency companies, including Kraken exchange.
Regarding the settlement, the SEC reached an agreement with Binance after accusing the company of selling its staking product as an unregistered security. Binance paid $30 million as part of the settlement.
It is unclear at this point whether Binance will pursue a settlement or take a legal route in response to the SEC’s actions, as the exchange is currently in the spotlight.
