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SEC’s charges against Binance are as follows:

• Changpeng Zhao, the CEO and founder of Binance, and the exchange’s U.S. arm, artificially inflated trading volumes
• Diverted customer funds
• Did not restrict U.S. customers from accessing its platform
• Misled investors about market surveillance controls
• Facilitated the illegal trading of several cryptocurrencies that the SEC classified as unregistered securities

It was also conveyed that there is no evidence of fraud behind so many charges.

Binance agreed to pay $4.3 billion to settle with the Justice Department and the Commodity Futures Trading Commission for illegal financial violations.

Although Changpeng Zhao accepted the lawsuit and agreed to pay the requested money, the rest of the case continues with Binance.

(SEC) A journalist who closely follows the case said the following:

“Binance has reached agreements with other organizations, including the DOJ and the CFTC. However, it is unwilling to settle with the SEC. Because doing so would mean acknowledging that the tokens mentioned in the case are securities. This could have a more significant impact on Binance’s business model than anti-money laundering compliance issues.”

Another journalist who also closely follows the case referred to the SEC’s jurisdiction, saying:

“Binance has a strong argument that the SEC has exceeded its jurisdiction and has not proven fraud, and it wants to try its luck in court because it believes in that.”

The identities of these two sources were not disclosed due to the confidentiality of legal proceedings.

The SEC ‘s lawsuit against Binance is one of many lawsuits the regulator has filed against cryptocurrency companies in recent years.

The SEC was known for winning all of its lawsuits against the cryptocurrency community. However, it partially lost its first major lawsuit, the Ripple (XRP) case. The SEC initially focused on companies that sell digital tokens. However, it has turned to firms that offer trading platforms and exchange activities and act as broker-dealers.

The post SEC Regulator Faces Off with Binance appeared first on Coin Engineer.

According to the agreement, former CEO Changpeng Zhao will have to pay $150 million according to the order signed by Judge Manish Shah in the Northern District Court of the United States on 14th December, and one-third of this amount will be paid within the next 30 days. Binance will also have to pay a fine of $1.35 billion to CFTC, it will also have to reimburse “unfair transaction fees” of $1.35 billion.

The agency said that Binance’s former CEO Changpeng Zhao had requested customer demand in the US on his instruction and that he was aware of the regulations in this area.

However, the US chose to ignore them in a statement published on Monday.

Furthermore, the approval order requires Binance and Zhao to assure the implementation of a corporate governance structure that includes a board of directors consisting of independent members, a compliance committee, and an audit committee.

Penalty Case

CFTC announced a staggering corporate agreement of $4.3 billion in late November, including several federal institutions such as the Treasury Department and the Department of Justice. Zhao admitted guilt to violations of money laundering and sanctions violations after years of investigations by federal regulators.

Zhao also stepped down as the chairman of the Binance.US board of directors in the past weeks and effectively abolished his influence over Binance.US.

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The post Judge Approves Agreement Between Binance and CFTC! appeared first on Coin Engineer.