Ethereum is currently down 2.59%, Cardano has fallen 4.71% and Polygon MATIC has seen a 4.34% loss. Other notable cryptos were down across the board before making back some recovery. As for BNB, the crypto Binance owns, its price dropped 5% after the news dropped. It showed signs of recovery on Wednesday, gaining 3.5% in 24 hours. How have crypto prices reacted?īitcoin, the global leading crypto, plunged 6% at the Binance news and hit lows of $25,440 after showing a promising rally towards $30,000 last week. A win for the crypto sector would have widespread ramifications for the other ongoing cases.īut the latest two cases against arguably the biggest names in crypto, Binance and Coinbase, sends a message that the SEC isn’t resting until it’s gotten to the bottom of the situation. In an interesting twist, some now predict that crypto trading company Ripple may win its case after the SEC sued the business in 2020 for operating unregistered securities with its XRP token. Even Kim Kardashian felt the sharp end of the regulatory body, as the SEC slapped the reality star with a lawsuit for not disclosing the payment she got for touting EthereumMax’s EMAX tokens. The two companies had already suffered from the FTX fallout, with customers unable to withdraw funds.Ī month later, it brought a claim against stablecoin operator Terraform Labs and its CEO Do Kwon for defrauding investors using its TerraUSD stablecoin and the ill-fated Terra Luna coin. One of the biggest clashes was the SEC suing crypto trading groups Genesis Capital and Gemini over their crypto lending scheme, which the SEC said should be registered as a security. Since then, the regulator has launched over 30 crypto-related enforcements, leaving the sector quagmired in litigation. The SEC has been very busy trying to regulate the crypto sector after the fallout from FTX’s collapse, where crypto wunderkind Sam Bankman-Fried now stands accused of fraud and misleading investors. In April, Coinbase sued the watchdog in an attempt to get some answers around legalizing crypto securities. The plot thickens as Coinbase’s and the SEC’s relationship, which used to be on okay terms, has soured. In its complaint, the SEC said “Coinbase has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities markets and investors”.Ĭoinbase rebutted the claims, saying the SEC’s “reliance on an enforcement-only approach in the absence of clear rules for the digital asset industry is hurting America’s economic competitiveness” and that the company had demonstrated a commitment to compliance. The top financial watchdog claims Coinbase, which holds $130 billion in assets, has been operating unregistered securities and has Coinbase’s staking-as-a-service program in its crosshairs. crypto exchange accusing it of similar misconduct to Binance. It was Coinbase’s turn the very next day, with the SEC filing a lawsuit against the U.S. A statement from the company said “while we take the allegations in the SEC’s complaint seriously, they should not be the subject of an SEC enforcement action, let alone on an expedited basis”. In the SEC’s eyes, the smoking gun is Binance’s former chief compliance officer saying to another colleague over text in 2018, “We are operating as a f****ng unlicensed securities exchange in the USA bro”.īinance has vehemently denied the accusations. The SEC also charges Binance and its linked entity, BAM Trading Services, with operating unregistered securities. There are 13 civil charges in total, including an accusation of Zhao secretly controlling the Binance.US platform, despite claiming to have no involvement in it. A court filing accused the top crypto exchange company of secretly sending billions of dollars worth of customer funds between companies controlled by Zhao. The SEC’s gripes against Binance and its CEO, Changpeng Zhao, are numerous.
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