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HomeLatest NewsBitcoin falls again and clings to $25,000 after Binance is sued

Bitcoin falls again and clings to $25,000 after Binance is sued

Date: March 3, 2024 Time: 17:36:47

The cryptocurrency market takes an unexpected twist in the script. Bitcoin is the king of digital currencies by American banks, a situation that gave rise to cryptocurrencies. The fall comes after the lawsuit filed by the United States Securities and Exchange Commission (SEC) – the regulator of markets in the country – which has accused Binance, its affiliated companies and its director delegate, Zhao Changpeng, of violating US securities laws.

The SEC filed a total of 13 charges against Binance and its founder, Changpeng Zhao, accusing them of blatantly ignoring US stock market laws and earning billions of dollars in exchange for putting their assets at “significant risk”. clients, as well as irregularly managing the funds of its users and lying to investors and regulators, among other things. In a 136-page lawsuit, the SEC denounces that Binance has been illegally offering to buy and sell ‘crypto’ assets in the US on platforms not registered in the country and lying about its alleged surveillance and control systems.

In addition, it ensures that the company has improperly managed client funds, even diverting them without their knowledge to another independent firm, but also controlled by Zhao. According to Gensler, the Chinese-born billionaire and Binance created a “wide web of deception, conflict of interest, concealment, and calculated evasion of the law.” The case opened by the SEC went civil, but some of the evidence is similar to that which led to the downfall of the cryptocurrency platform FTX and criminal charges against its founder, Sam Bankman-Fried, for example the alleged use of customer funds to finance other operations.

In that case, part of the clients’ money was diverted without their knowledge to FTX’s investment arm, Alameda Research, while in this case the lawsuit claims that more than 20,000 million have passed through Merit Peak, an investment firm controlled by Zhao. dollars since Binance began operating in the US, including user funds. Through Twitter, Zhao said the company would provide a response to the lawsuit once it had time to study it and ensured it had taken steps to ensure all systems remained stable, including withdrawing and depositing funds.

After knowing the demand today, there were clear falls in the cryptocurrency markets, especially for Binance Coin (BNB), which lost almost 9%, but also for other important assets such as bitcoin and ethereum, which were left between 3 % and 4%. The action filed this Monday by the SEC is added to another released last March by the Commodity Futures Trading Commission (CFTC), which regulates futures and options markets and which accused the company of ” numerous violations” of financial and regulatory standards in the country.

Founded in China in 2017 Zhao, of Chinese origin but Canadian nationality, was ranked 19th in the 2022 edition of Forbes’ list of the world’s richest people.

It must not be forgotten that cryptocurrencies have experienced a great revaluation since the start of 2023, which have boosted these digital currencies after the 2022 coup. Bitcoin in particular has gone from trading at 16,500 dollars to 2,5700 after the last retreat, although it has been about to approach the barrier of 30,000 dollars.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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