After Changpeng Zhao, the (now former) CEO of cryptocurrency trading platform Binance, pleaded guilty as part of the over $4 billion settlement with the United States regulators to keep the business running, the US Securities and Exchange Commission (SEC) has continued to probe Binance.US.
Indeed, the SEC is still looking for evidence that the company and its founder may have a backdoor – similar to that of the crashed crypto exchange FTX – to control assets stored on the Binance.US platform, according to a report on November 27.
Specifically, at a Monday status conference, Binance.US argued that the SEC could not prove any misuse of the users’ assets and was overstepping while the regulators invoked the major questions doctrine requiring clear congressional authorization for regulatory actions. A joint status update is pending until mid-December.
Binance’s court troubles
As a reminder, Binance Holdings Limited, the entity operating the world’s largest crypto exchange, pleaded guilty to charges of anti-money laundering, unlicensed money transfer, and sanctions violations on November 21. Furthermore, CZ has also agreed to a $50 million fine, stepped down from his position, and faces prison.
Following this news, Binance Coin (BNB) suffered major losses, having dropped 15% as traders demonstrated distrust in the time token of the top crypto exchange. However, it is currently trading at $229.40, recording an increase of 0.38% on the day, as per the latest data on November 29.
According to JPMorgan (NYSE: JPM) analyst Nikolaos Panigirtzoglou, the settlement was a positive development for both Binance and the broader crypto sector, as it helped remove a systemic risk from a potential Binance crash, as Finbold reported on November 22.
Meanwhile, football star Cristiano Ronaldo is facing charges over “promotion, assisting, and/or actively participating in the offer and sale of unregistered securities in coordination with Binance” in a lawsuit arguing that several individuals experienced financial losses as a result of this advertising.
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