Is BinanceUS Next FTX? Why SEC Is After Crypto Exchange Binance?

Crypto News: Binance, the world’s largest crypto exchange recently saw a rise in scrutiny from several global financial watchdogs. This comes in when the digital asset industry saw the collapse of the crypto exchange FTX, seeking regulatory clarity. However, the US regulatory bodies back to back allegations on crypto leaders and their linked projects left the market confused.

Also Read: Why XRP Lawsuit Verdict Is Likely To Delay Further

Binance.US On The Radar Of SEC?

In the latest development, Binance’s US arm announced the delisting of Justin Sun linked TRON (TRX). Binance.US mentioned that this was done after carrying out periodic reviews of its listings. TRX token flagged regulatory standing risks in the United States.

TRON’s delisting came in reaction to the charges pressed by the US SEC of fraud and other securities law violations against Justin Sun. The filed complaint mentioned the Tron Foundation Limited and BitTorrent Foundation linked to Justin Sun. This directly raises the question of whether is Binance.US offering SEC marked Securities.

According to a report that SEC senior trial attorney William Uptegrove stated that the agency believes that Binance.US operated an unregistered exchange. This comment came during the Binance.US-Voyager $1 billion deal. Read More Crypto News Here…

Also Read: Binance CEO “CZ” Says Crypto Regulatory Crackdown Will Boost Adoption

US SEC moved in to halt the Voyager deal, however, Binance.US won court approval in order to take over the bankrupt crypto platform’s customer accounts. The commissions claimed that Binance’s affiliated exchange is operating an unregistered securities exchange and indicated that it will take some enforcement action.

Judge Wiles passing the Voyager-Binance.US deal stated that the Commission didn’t mention that Binance.US is operating as a securities broker.

Later, CFTC charged Binance and its founder, Changpeng Zhao (CZ) with operating an illegal Digital Asset Derivatives Exchange. The complaint mentioned Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited.

This suggests that Binance.US could be the next exchange on the radar of US financial regulators.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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