SEC sues Binance in US District Court for unregistered securities operations
The United States Securities and Exchange Commission (SEC) filed suit against Binance, its U.S. platform and CEO Changpeng Zhao (CZ) in the District Court for the District of Columbia on June 5.
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The U.S. regulator pressed 13 charges against Binance, including unregistered offers and sales of the BNB (BNB) and BUSD tokens, the Simple Earn and BNB Vault products and its staking program. In addition, the SEC alleges in the suit that Binance failed to register its Binance.com platform as an exchange or a broker-dealer clearing agency. Further, it claimed Binance and BAM Trading failed to register Binance.US as an exchange, broker and clearing agency. CZ was sued as a "controlling person."
According to the suit:
It continued, “Defendants BAM Trading and BAM Management defrauded equity, retail, and institutional investors about purported surveillance and controls over manipulative trading on the Binance.US Platform, which were in fact virtually non-existent.”
Among the allegations behind the charges are claims that Binance failed to restrict U.S. investors from using Binance.com, And that Binance.US engaged in wash trading through its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ.
Related: Binance plans new round of layoffs amid increased regulatory scrutiny
In addition, the suit claims that funds from Binance and Binance.US were commingled in an account controlled by CZ-associated Merit Peak Limited. These charges echo complaints filed by the Commodity Futures Trading Commission on March
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