Hi HODLers, Hiveans and Lions,
This is it! The SEC has decided to step-up on its Crypto Crackdown and is going after the easy win: Binance, an exchange with links to China and with a Canadian founder (but ethnically Chinese).
And they are going hard!
The U.S. Securities and Exchange Commission sued crypto exchange Binance, the operating company for Binance.US and Binance founder and CEO Changpeng "CZ" Zhao on allegations of violating federal securities laws on Monday.
Once upon a time, I thought the SEC was actually a reputable instutition with very thorough members. The latest tweet from the SEC to announce that they are prosecuting CZ and Binance is clearly below the belt. This is a private message from 2018, when Binance was less than a year old.
Also, to this day: ALL the US and other Crypto Exchanges have been vocal that they have NO WAY to register their exchange to the SEC...
Nevertheless, they do list a few issues ongoing with Binance and some shady things that remind us of FTX.
Binance and its poor financial controls meant that customer funds were diverted, including potentially for personal uses, the suit said. Merit Peak Limited, a market maker previously tied to Zhao, had access to "billions of U.S. dollars of customer funds," while Sigma Chain, another CZ-controlled entity, received nearly $200 million from BAM Trading and a BAM Trading custody account, the SEC alleged. CZ himself allegedly "personally received $62.5 million from one of the Binance bank accounts" between October 2022 and January 2023.
Believe me, I am not a Binance or BSC boy but I do feel this one is an easy target and easy win for the politically motivated SEC.
Hopefully, they do not find too many holes in the company as we cannot afford another FTX like collapse...
Stay safe out there!
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