SEC sues Binance and CZ for securities violations

The U.S. Securities and Exchange Commission is taking legal action against Binance and its CEO, Changpeng Zhao (CZ).

The SEC lawsuit claims that Binance “unlawfully solicited” customers from the US to trade assets on unregistered platforms. Also, the securities regulator alleged that contrary to what the defendants claimed, Binance and CEO Zhao were directly involved in Binance.US operations.

Meanwhile, the latest development comes shortly after another federal regulator, the Commodity Futures Trading Commission (CFTC), also sued Binance for operating without proper registration, thereby violating the Commodity Exchange Act.

Meanwhile, Binance CEO Changpeng Zhao stated that the company will issue a statement once they see the SEC complaint.

4.
Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits.
We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.
🙏
— CZ 🔶 Binance (@cz_binance) June 5, 2023

Amid the regulatory issues mounting against Binance, recent reports are stating that the crypto exchange could see a new CEO, Richard Teng, who was recently appointed to oversee Binance’s head of regional markets outside of the United States.

Source: https://crypto.news/sec-sues-binance-and-cz-for-securities-violations/