Binance is currently subject to legal action by the SEC. The reason for the lawsuit: trading of tokens considered as securities. Binance’s CEO has responded to these accusations, while the platform has expressed disappointment with the complaint filed by the SEC.
SEC accuses Binance of facilitating trading of tokens labeled as securities
considered to be largest crypto exchange, Binance often finds itself at the center of many controversies. Currently, he and its CEO Changpeng Zhao are subject to a lawsuit filed by the SEC.
The SEC accuses Binance of having facilitated trading activities for several popular tokens considered titles. In the list we find:
- BNB,
- BUSD,
- FLOOR,
- ADA,
- MATIC,
- THREAD,
- ATOM,
- SAND,
- MANA,
- ALGO,
- AXS,
- COTI.
In his complaint against Binance, the SEC clarifies an important point: the charges do not relate to tokens with large trading volumes. This category includes ETH, USDC, USDT and LTC.
“Binance offered coin earning programs like BNB Vault and Simple Earn, as well as a staking investment plan”explains the regulator.
CZ and Binance speak out on the complaint
As usual, Changpeng Zhao reacted on Twitter. “The Binance team actively monitors and maintains the stability of the platform”, did he declare. To reassure users, he claims that the current procedure will not affect withdrawal and deposit functionality. Also, Binance will publish a full response after reviewing the complaint filed by the SEC.
On his blogBinance says it will continue to cooperate with regulators and defend the technology from lawsuits. “Our priority is to provide a safe platform while promoting financial freedom”, he argues. The company reassures its users: user assets on Binance and its affiliated platforms are secure.
These legal actions against Binance show one thing: the SEC is closely monitoring crypto companies. It remains to be seen whether the method used is the correct one or not. To be continued…
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