Binance, Binance.US and CZ offered unregistered securities to the general public in the form of the BNB token and Binance-linked BUSD stablecoin, said the suit, which also alleges that Binance’s staking service violated securities law. There are similar charges against BAM Trading – the operating company for Binance.US – and Binance itself, including failure to register as a clearing agency, failure to register as a broker and failure to register as an exchange. The SEC also alleged that Binance allowed for commingling of customer funds, that CZ was “secretly” controlling Binance.US amd that a CZ-owned and operated entity was inflating Binance.US’s trading volume.
Source: https://www.coindesk.com/policy/2023/06/05/sec-sues-crypto-exchange-binance-ceo-changpeng-zhao/?utm_medium=referral&utm_source=rss&utm_campaign=headlines