SEC Safeguards Binance ❄

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SEC Safeguards Binance

The U.S. Securities and Exchange Commission (SEC) has taken swift action to address concerns surrounding the security of $2.2 billion in U.S. customer assets held by Binance. In an emergency filing, the regulator has raised alarm bells, emphasizing the significant risk these assets face if preventative measures are not implemented. The SEC is now seeking a freezing order to safeguard the funds and prevent potential misappropriation by Binance founder Changpeng Zhao.

The SEC’s move comes after allegations against Binance and Zhao, accusing them of engaging in unregistered securities offerings and commingling investor funds with their own. The filing sheds light on the SEC’s unease regarding Zhao’s overt dismissal of the court’s jurisdiction. Moreover, it reveals that two Binance subsidiaries operating in the U.S., BAM Trading and BAM Management, are allegedly controlled by Zhao and have already reaped illicit gains totaling at least $420.4 million through profits and venture fundraising. Notably, the SEC filing points out years of communications with Binance, which claims to lack an official headquarters, during which Binance.US needed to provide clear information about who controls the customer assets. This raises further concerns regarding the extent of Zhao and Binance’s control over customer funds, reportedly worth billions of dollars.

What do you think about the SEC’s actions? And will they pay off?

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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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