US SEC Slams Binance With Lawsuit

The US Security and Exchange Commission (SEC) sues Binance and CEO CZ Zhao. On February 16, 2022, the SEC alleged that Cheng Ping Zhao controls two anonymously-controlled accounts on his platform. The two accounts trade Binance Coin.     

SEC is instrumental again in clipping crypto’s trajectory. The US entity responsible for exchange and trade laws has been firm on taking every blockchain technology under scrutiny since 2019.  

Moreover, the Biden administration is intending to release an executive order in February. It establishes a government-wide policy for digital assets, citing individuals familiar with the topic, according to Bloomberg. 


Binance CEO CZ Zhao allegedly took advantage of the two accounts for crypto day trading. As a result, he took full control of these two entities in 2019.  

According to Wall Street Journal, these accounts were Merit Peak LTD. and Sigma Chain AG. The investigation into this issue is still ongoing as it moves to the Commodity and Futures Trading Commission. 

Regardless, CZ Zhao always had brushes with the law. The platform has gained a negative reputation in the US and the United Kingdom, China, Pakistan, and Singapore.    

He is undergoing legal procedures in the UK and Singapore to allow Binance legally. If it means not gaining the full profit of the app in these areas, Zhao yearns to finish the legal process and pay the dues before proceeding with opening the branch. 


Coinbase suffered the same lawsuit by SEC in 2017. It was similar to Binance’s “fraudulent practice” of trading insider advantage. Coindesk was responsible for rapid Pump and Dump schemes that show. This cybercrime issue tampers with the private information of the crypto investors on the site.  Another problem with Coinbase and SEC is not returning unclaimed funds to California.      


Ripple got sued with the same lawsuit by SEC in 2018. A legal allegation worth 1.3 billion USD for uploading pre-mined XRP coins on their blockchain. Ripple was also responsible for scamming Jordan Deaton and other Ripple crypto investors in the platform for 10 billion USD. Deaton’s father, John Deaton, became the Amicus Lawyer for Ripple in 2020.   


It is necessary to meet every international legislation since cybercrime laws are firmly and forcefully implemented by all local governments. Binance, Coinbase, Ripple, or Stablecoins like Ethereum and Bitcoin are responsible for following rules and regulations.  Besides, crypto businesses are ramping up their lobbying efforts as US regulators tighten their grip on the digital asset market. 

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