The U.S. Securities and Exchange Commission (SEC) is pressing ahead with its legal battle against cryptocurrency exchange Binance Holdings Ltd., citing a recent settlement by the Department of Justice (DOJ) in support of his allegations. The SEC’s firm stance comes after Binance reached a significant settlement with the US authorities.
In June, the SEC initiated a lawsuit against Binance and the company’s CEO, Changpeng Zhao, accusing them of improperly handling customer funds and violating securities laws. Both Binance and Zhao have since dismissed the lawsuit, challenging the SEC’s claims.
The legal dispute intensified when on November 21, Binance agreed to a $4.3 billion settlement with the DOJ and other US authorities. As part of the settlement, Binance admitted that the SEC now strengthens its case regarding financial misconduct and fraudulent practices targeting investors.
Efforts to secure comments from Binance representatives or Zhao’s defense attorney were met with silence, leaving the public story in the hands of legal statements and court filings.
The ongoing litigation highlights the growing scrutiny by US regulators of cryptocurrency exchanges and the broader digital asset industry, particularly regarding compliance. comply with securities laws and consumer protection standards. The outcome of this case could set a precedent for future legal actions in the rapidly growing cryptocurrency market.
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