It’s now official: the U.S. Securities and Exchange Commission (SEC) has filed 13 charges against Binance entities and its founder, Changpeng Zhao (CZ). The charges allege that Binance and CZ violated U.S. securities laws by offering unregistered securities to U.S. investors.
The SEC’s complaint alleges that Binance and CZ offered and sold digital asset securities to U.S. investors without registering the securities with the SEC. The complaint also alleges that Binance and CZ failed to comply with the SEC’s anti-money laundering rules.
In response to the charges, CZ issued a statement on Twitter, saying that he and Binance “will vigorously defend themselves against the SEC’s allegations.” He also noted that Binance has “always been committed to compliance with applicable laws and regulations” and that the company “will continue to do so.”
The SEC’s charges against Binance and CZ are a reminder that digital asset exchanges and their founders must comply with U.S. securities laws. The SEC’s complaint is a warning to all digital asset exchanges and their founders that they must take steps to ensure that they are in compliance with U.S. securities laws.
It remains to be seen how this case will play out, but it is clear that the SEC is taking a hard stance on digital asset exchanges and their founders. It is important for all digital asset exchanges and their founders to take steps to ensure that they are in compliance with U.S. securities laws.