SEC Scrubs Biography Page of Former Director Involved in Ripple Case
The SEC has made significant changes to the biography page of William Hinman, the former director of the SEC's corporation finance division, removing much of the information about his professional past. Hinman is known for a speech he gave in 2018 about how decentralization impacts the regulatory classification of Ethereum and Bitcoin. The SEC's alterations to his biography page have raised questions about the agency's motives, with some speculating that they are preparing to "throw him under the bus" in the ongoing case against Ripple over the XRP token. Hinman's notion of decentralization is also being incorporated into legislative proposals aimed at the digital assets industry.
Coinbase Shares Drop Over 10% as SEC Files Suit Against Binance for Alleged Securities Law Violations
Coinbase (COIN) shares dropped by 10.3% following news that the Securities and Exchange Commission (SEC) had filed a lawsuit against Binance for allegedly violating federal securities law. The stock initially fell by over 5% upon the release of the filing and continued to decline. Bitcoin (BTC) also fell by more than 5% to below $26,000, while MicroStrategy (MSTR) shares, which hold a significant amount of bitcoin on its balance sheet, fell by almost 9%. The SEC is accusing Binance of offering unregistered securities and staking services to the public, among other allegations, as U.S. lawmakers increase their enforcement actions against crypto companies. In March, Coinbase received a warning from the SEC that it may face enforcement action related to its listing of potential unregistered securities. The exchange has since focused on expanding its presence in Canada, which it believes has clearer rules for crypto firms than the U.S.
SEC Lawsuit Against Binance Highlights Crypto Assets Viewed as Securities
The SEC has filed a lawsuit against Binance and its CEO for allegedly lying to regulators about operations and conducting unregistered offers and sales of securities to US investors. The agency's stance on certain crypto assets being securities has caused a stir in the industry. The SEC considers Binance's BNB and BUSD tokens, as well as other assets traded on the exchange, to be securities offered as investment contracts. The filing includes 53 pages of context on 12 specific crypto assets, highlighting the SEC's stance that most cryptocurrencies (excluding Bitcoin) are securities.
Altcoins Suffer Major Losses After SEC Lawsuit Against Binance and CEO CZ
Altcoins are experiencing significant losses in the wake of the SEC's legal action against Binance and its CEO, Changpeng "CZ" Zhao. The allegations include the exchange offering unregistered securities to the public, including Binance's BNB token, BUSD stablecoin, and several others. The entire cryptocurrency market is down, with most of the mentioned tokens experiencing declines of 5%-10%. Even bitcoin and ether, the world's largest cryptocurrencies, are down 5% and 4.5%, respectively.
Binance’s Cryptocurrency, BNB, Drops to Two-Month Low Following SEC Lawsuit
Binance's cryptocurrency, BNB, suffered a 8.74% decline to reach a two-month low of $278.55 following the Securities and Exchange Commission's (SEC) legal action against the exchange for allegedly conducting an illegal operation in the US. This is the largest one-day drop for BNB this year, as US regulators continue to clamp down on crypto firms. The SEC claims that Binance and its founder misused customers' funds and engaged in manipulative trading. Binance, a major cryptocurrency exchange, is being sued by the SEC for violating several US regulations, including allowing American users to trade on its unregistered platform and engaging in backroom asset shuffling without informing customers. Forbes also reported that Binance withdrew from a non-binding agreement to acquire FTX's non-US operations after the company's collapse.
Coin Security Responded That the SEC Complaint Aims To Unilaterally Define the Cryptocurrency Market Structure
The United States Securities and Exchange Commission (SEC) has filed a complaint against Binance, attempting to unilaterally define the structure of the crypto market. Although Binance actively cooperated with the investigation and conducted friendly discussions, the SEC chose to take unilateral action and file a lawsuit. This action is considered a lack of thoughtful and meticulous regulatory methods, and may weaken the United States' position as the center of global financial leadership. Binance will work with industry partners to protect this important technology from misleading litigation and continue to strive to provide users with a safe and reliable platform.
The SEC Claims That SOL, ADA, MATIC, FIL, ATOM, SAND, etc. Are All Securities
SEC claiming SOL, ADA, MATIC, FIL, ATOM, SAND etc are all securities.
Binance. US Will Transfer at Least $145 Million to Physical Accounts Controlled by CZ and Purchase $11 Million Worth of Yachts
On June 6th, the SEC stated in the filing that as of 2021, at least $145 million had been transferred from BAM Trading to the Sigma Chain account, and an additional $45 million had been transferred from BAM Trading's trust company B account to the Sigma Chain account. Sigma Chain is an active market maker on the Binance. US platform. From this account, Sigma Chain spent $11 million to purchase a yacht.
The SEC Accuses CZ Individuals of Receiving $62.5 Million From a Bank Account in Binance
On June 6th, the SEC stated in its accusation files against Binance and CZ that CZ individuals received $62.5 million from a bank account in Binance between October 2022 and January 2023.
Binance CEO Says Systems Stable Amid SEC Lawsuit, Awaiting Complaint
Changpeng Zhao, CEO of Binance, has stated that the exchange's systems are stable and that withdrawals and deposits are processing as normal, despite the recent lawsuit filed against the company by the US Securities and Exchange Commission (SEC). In a tweet, Zhao said that the team is standing by and awaiting the complaint, as the media has received information before the exchange has. He also stated that Binance will issue a response once they have seen the complaint.
