‘They Didn’t Sue FTX’ Binance CEO on Broad SEC Crackdown

Binance

Following the lawsuits filed against the team of Binance and Coinbase, the United States Securities and Exchange Commission (SEC) has launched a number of enforcement actions this week. FTX was not sued by the market regulator, according to Binance Chief Executive Officer Changpeng ‘CZ’ Zhao, despite the exchange and its founder Sam Bankman-Fried’s widely-publicized misdeed, which ultimately caused the exchange to go bankrupt.

The tweet from Gemini CEO Cameron Winklevoss, who commented that “Being sued by the SEC used to mean you probably did something wrong,” prompted CZ’s remark. It now denotes that you are probably acting appropriately.

The two largest trading platforms in the market have been shaken by litigation within a 24-hour period, enervating the sector. The statement from the CEOs of both exchanges demonstrates their resolve to battle the SEC, even if the matter is brought before the courts, even if it’s unclear what the regulator still has up its sleeve.

13 distinct accusations were made against Binance Exchange by the SEC, including operating an unregistered exchange illegally and flagrantly breaking Know-Your-Customer (KYC) regulations.

Impact on industry

Despite having numerous differences, the actions brought against both exchanges share one fundamental component: the trade of unregistered crypto securities. According to the allegations, the market authority labelled a number of digital currencies as securities, including Cardano (ADA), Solana (SOL), Filecoin (FIL), and Decentraland (MANA).

This classification caused the value of these digital currencies to decrease. Cardano is now down 2.82% to $0.3429 because to concerns over a potential delisting from Robinhood, while Polygon (MATIC) has lost 3.17% of its value over the last 24 hours. This is despite the fact that the larger market has begun to see some small recoveries as of the time of writing.

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