SEC Is Investigating Whether Binance Left an FTX-Like Backdoor

The SEC is still looking for evidence to find out whether Binance and CZ have backdoors to control assets stored on the Binance.US platform.

SEC Continues to Investigate Binance.US for Evidence of Potential Fraud

The SEC is concerned that Binance may embezzle U.S. crypto assets using FTX-style fraud.

The Securities and Exchange Commission continues to seek evidence that Binance and its founder Changpeng Zhao may have a backdoor to control assets stored on the Binance.US platform.

The SEC sued Binance and Binance.US in June for allegedly operating illegal securities exchanges, and its case so far has been based on the agency’s concerns about Binance’s potential to expropriate American crypto assets in an FTX-style scam.

Binance and Zhao pleaded guilty to criminal charges last week, largely resolving long-running US investigations into anti-money laundering controls and compliance with sanctions laws.

However, the Justice Department’s lawsuit did not include allegations that Binance misappropriated its customers’ crypto assets.

*This is not investment advice.