![]() customers and be separate from Binance's international arm – itself operating as. In contrast to the other SEC complaint against a primarily U.S.-based exchange, the SEC's complaint against Binance alleges egregious conduct – significantly, that Zhao engaged in an active, deliberate effort to create an illusion of regulatory compliance by creating a U.S.-based shell entity, operating as, which would ostensibly serve U.S. ![]() ![]() the exchanges' staking services are securities offered and sold without registration 1įinally, both complaints include similar prayers for relief, including civil monetary penalties, disgorgement and injunctions against future such violations of federal securities laws.īut the similarities between the two complaints end there.numerous digital assets traded on the respective exchanges are securities – 10 or 13 tokens, respectively, with some token overlap between the complaints.the offer and sale of unregistered securities in violation of Sections 5(a) and 5(c) of the Securities Act of 1933 (Securities Act).control person liability against parent companies of the entities for the above violations under Section 20(a) of the Exchange Act.functioning as a clearing agency with respect to securities without registration, in violation of Section 17A(b) of the Exchange Act.brokering the purchase or sale of securities without registration, in violation of Section 15(a) of the Exchange Act.operating an unregistered exchange, in violation of Section 5 of the Securities Exchange Act of 1934 (Exchange Act).A Closer Lookīoth SEC complaints include some similar claims. The only real surprise was the SEC's decision to file the two complaints within a day of one another. In March 2023, the Commodity Futures Trading Commission (CFTC) filed an enforcement action against Binance, and, around the same time, the other national exchange announced it had received a Wells notice from the SEC regarding a likely enforcement action. Neither of these actions should come as a surprise to those monitoring the cryptocurrency industry. The next day, on June 6, 2023, the SEC filed a complaint against another large exchange based in the United States. First, on June 5, 2023, the SEC filed a complaint against Binance and its owner Changpeng Zhao. ![]() Securities and Exchange Commission (SEC) brought successive actions against two of the world's largest cryptocurrency exchanges – the first blows in what will likely be prolonged litigation against some of the biggest players in the digital asset industry. In a one-two punch earlier this month, the U.S. ![]()
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