Summary
• Binance, the world’s largest cryptocurrency exchange by trading volume, is currently facing legal challenges in the US.
• The Securities and Exchange Commission has filed a lawsuit against Binance and its CEO Changpeng Zhao for alleged violations of US regulations.
• SEC Chairman Gary Gensler accused Zhao and Binance of engaging in an “extensive web of deception” through thirteen charges.
Binance Under Investigation
Binance, the largest cryptocurrency exchange in the world in terms of trading volume, is currently facing various legal challenges in the United States. Centralised Exchange Holdings Ltd. and its CEO, changpeng zhao founder and ceo at Binance Changpeng Zhao have been alleged to have violated US regulations, as stated in a filing made by the Securities and Exchange Commission in a federal court, as reported by Bloomberg.
SEC Chairman’s Statement
SEC Chairman Gary Gensler said in a statement that „Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law“.
Changpeng Zhao
Changpeng Zhao is the Founder and Chief Executive Officer at Binance. His contribution to the enhancement of Binance made it one of world’s largest cryptocurrency exchanges since its inception in 2017. He also launched blockchain network Binance Smart Chain which has made remarkable contribution to development of decentralized finance ecosystem while launching US affiliate -Binanece.US- during 2019. He is commonly known as CZ who ranked 113th richest person globally as per 2022 statistics whereas his past involvements include founding Fusion Systems-a trading system for brokers famous for some high frequency trading systems for brokers- along with being part of team developing Blockchain info & playing role CTO at OKCoin-a secure crypto platform supporting Bitcoin Ethereum Dogecoin & other crypto assets.
Investors Perspective
The lawsuit against Biance has raised certain concerns amongst investors regarding security & safety issues involved with dealing on such platforms while raising questions about regulatory standards imposed on crypto exchanges operating within United States or targeting US customers .