🚀 S.E.C. Accuses Binance of Mixin’ 💰 and Tellin’ Stories to Regulators 🚫
Da Securities and Exchange Commission (S.E.C.) went aftah Binance, da world’s biggest cryptocurrency exchange, and accusing dem of mishandlin’ customer funds as well as lyin’ to regulators and investors about dey operations. Dis whole ting went down when S.E.C. filed one big case in federal court on Monday.
Da Wall Street watchdog stay sayin’ Binance was mixin’ “billions of dollars” in customer funds and secretly sendin’ ’em to one oddah company called Merit Peak Limited, which stay controlled by Binance’s founder, Changpeng Zhao. 😱💼💸
Da charges, dey included misleading investors about da adequacy of dey systems to detect and control manipulative trading. Regulators also stay sayin’ Binance nevah take sufficient steps fo’ restrict U.S. investors from accessin’ dey unregulated exchange. 😬🔍📉
Da charges against da biggest crypto exchange, dey jus’ one small part of how U.S. regulators stay tryin’ fo’ bring some law and ordah to da Wild West of crypto trading. Dey like fo’ make da big players play by U.S. laws. 🤠🇺🇸
Binance, dem been undah pressure already. Da Justice Department stay investigatin’ ’em fo’ money-laundering violations. Binance wen lose dey outside auditin’ firm when Mazars wen say dey no goin’ do business with crypto companies no mo’ late last year. Da company, dey also see dey control of da crypto market shrink. 😨💼🔒
To improve dey reputation, Binance wen hire plenny new compliance officials, including one former federal prosecutor who now heads dey compliance operation. 🧐👮♂️👥
“We stay sayin’ Zhao and da Binance entities not only knew da rules of da road, but dey also consciously chose to evade ’em and put dey customers and investors at risk,” said Gurbir S. Grewal, director of da S.E.C.’s enforcement division. 💼🤔🕵️♂️
Da nation’s top securities regulator filed 13 charges against Binance and Mr. Zhao, better known in da crypto world as “C.Z.” Da S.E.C. taking action a little over a month aftah da Commodities Futures Trading Commission filed its own civil enforcement action against Binance and Mr. Zhao. ⚖️📝🔒
Binance representatives had no immediate comment. 🤐💼
Da C.F.T.C. stay tryin’ fo’ bar Mr. Zhao from doin’ business dat falls undah its jurisdiction fo’ life. Da agency also like fo’ permanently banish Binance from da United States. 🚫🇺🇸💼
Da moves against Binance and Mr. Zhao come months aftah da filin’ of criminal charges against Sam Bankman-Fried, da founder of FTX, which had been one big Binance rival in crypto trading until FTX wen implode and file fo’ bankruptcy last November. 😮💥💼
NOW IN ENGLISH
S.E.C. has accused Binance of mishandling funds and providing false information to regulators
The Securities and Exchange Commission (S.E.C.) has accused Binance, the world’s largest cryptocurrency exchange, of mishandling customer funds and providing false information to regulators and investors. The S.E.C. filed a significant case against Binance in federal court on Monday.
According to the S.E.C., Binance mixed “billions of dollars” in customer funds and covertly transferred them to another company called Merit Peak Limited, which is under the control of Binance’s founder, Changpeng Zhao. 😱💼💸
The charges include allegations of misleading investors about the effectiveness of their systems in detecting and preventing manipulative trading. Regulators also claim that Binance did not take adequate measures to restrict U.S. investors from accessing their unregulated exchange. 😬🔍📉
These charges against the largest cryptocurrency exchange are part of the broader efforts by U.S. regulators to establish law and order in the Wild West of crypto trading. They aim to ensure that major players comply with U.S. laws. 🤠🇺🇸
Binance has already been facing increasing pressure. The Justice Department is investigating the exchange for potential money-laundering violations. Binance also lost its external auditing firm last year when Mazars announced that it would no longer work with cryptocurrency companies. The company has also experienced a decline in its control over the crypto market. 😨💼🔒
To improve its reputation, Binance has hired several new compliance officials, including a former federal prosecutor who now leads its compliance operation. 🧐👮♂️👥
“We allege that Zhao and the Binance entities not only knew the rules of the road but also consciously chose to evade them, putting their customers and investors at risk,” said Gurbir S. Grewal, director of the S.E.C.’s enforcement division. 💼🤔🕵️♂️
The leading securities regulator in the nation has filed 13 charges against Binance and Mr. Zhao, also known as “C.Z.” in the crypto world. The S.E.C.’s action comes just over a month after the Commodities Futures Trading Commission filed its own civil enforcement action against Binance and Mr. Zhao. ⚖️📝🔒
Representatives from Binance did not provide an immediate comment. 🤐💼
The C.F.T.C. is seeking to permanently bar Mr. Zhao from engaging in activities under its jurisdiction. The agency also intends to permanently banish Binance from operating in the United States. 🚫🇺🇸💼
These actions against Binance and Mr. Zhao come months after criminal charges were filed against Sam Bankman-Fried, the founder of FTX, a significant rival of Binance in the crypto trading space. FTX faced financial difficulties and filed for bankruptcy in November. 😮💥💼
