What does the SEC's lawsuit mean for Binance & Binance?

The SEC’s goal with this lawsuit is to stop Binance and Binance.US from violating federal law and to bar Zhao and Binance at large from issuing any more of what the SEC considers securities. The charges in the SEC’s lawsuit mirror an earlier lawsuit brought by the U.S. Commodity Futures Trading Commission (CFTC) in March 2023.

What is Binance & how does it work?

Through its online platform, the company offers simplified avenues for buying and selling cryptocurrencies and other digital assets, in exchange for small fees. Binance dominates crypto trading. Last year its trades accounted for up to 70% of the market, with billions of dollars pumped through the exchange every day.

Did the SEC 'unwarranted' Binance?

It added it would defend itself in court and called the SEC’s step “uunwarranted.” The SEC alleged on Monday Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict US customers from its platform and misled investors about its market surveillance controls.

Is Binance safe?

The statement added: “All user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and we will vigorously defend against any allegations to the contrary.” The US Securities and Exchange Commission has filed a total of 13 charges against Binance in US federal court.