![]() ![]() On Monday, the US Securities and Exchange Commission (SEC), a financial watchdog, accused Binance and Zhao of operating a “web of deception”, charging him and his exchange with 13 offences including violations of the US Securities Act and acting as an unregistered exchange. Securities trading is tightly regulated across the biggest financial markets. Regulators have for several years been examining the features of some digital assets to decide whether they are in fact new versions of securities such as stocks or bonds. Forbes estimated his net worth at $10.5bn (£8.4bn) this week, although much of that wealth is derived from his ownership of Binance. Binance and other exchanges provided a key entry point for many people into cryptocurrencies, allowing people to buy assets such as bitcoin using “fiat” currencies such as the US dollar.īinance’s success made Zhao, also known as CZ, one of the world’s richest people on paper, and he has been a key advocate for the crypto industry. The company stressed that customer funds were “safe, secure and available”.īinance.US is an offshoot of, a cryptocurrency exchange that had grown rapidly after starting operations in 2017 into a company making billions of dollars of revenues, mostly from transaction fees as customers bought and sold cryptocurrencies. ![]() Among other violations, the SEC has accused the firm of misrepresenting trading controls on Binance.US, as well as secretly allowing "high-value" US clients to trade on, though American customers are supposed to be restricted from its main said it encouraged its customers to “withdraw their USD” by 13 June but warned that because of elevated volumes, withdrawal might take longer than usual to process. "The SEC has brought unjustified civil claims against our business, from which we will continue to vigorously defend ourselves, our customers," it later added.īinance is facing 13 charges from the SEC, after being scrutinized by regulators for months over its compliance with US securities laws. Binance.US and our business partners have not been spared in the use of these tactics, which has created challenges for the banks with whom we work," the exchange said in a statement. "The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. Customer deposits are still safe, it said, as assets are backed on a 1:1 ratio.Īfter June 13, Binance.US will become a crypto-only platform until it can find "more stable" banking partners, it said. It urged American customers to withdraw any fiat cash by the June 13 deadline, adding withdrawals could take longer than usual due to elevated activity on the platform. In a tweet Thursday evening, Binance.US alerted customers that its banking partners would be shutting off withdrawal by June 13, which could prevent the exchange from accepting deposits or issuing withdrawals in US dollars. The moves are part of an "ideological campaign" against the US crypto industry, Binance said.īinance's US arm is urging its customers to withdraw their cash from the crypto exchange by next week, as the Securities and Exchange Commission tightens the screws in its "ideological campaign" against the industry. It said its partner banks are preparing to shut off fiat withdrawal channels. Binance.US urged its customers to withdraw cash from the crypto exchange in a recent notice.
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