Binance Faces SEC Lawsuit: Impact on Cryptocurrencies and Investors

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Peace,

How are you doing Crypto hodlers?

I hope you still had strong hands after the market deepened since the beginning of the week.

I woke up and check my favorite crypto on the market on the Binance app. I saw that all the major coins went down and the decreasing rate for the last twenty-four hours was higher than usual.

I thought at first it was a manipulation of the market and before the daily candle closed everything should be back in the green.

SEC has filed a lawsuit against Binance

I was wrong about the market being temporarily controlled. It was actually the Securities and Exchange Commission (SEC) that filed a lawsuit against Binance company for selling securities without being conformed to the regulation defined by the SEC agency.

CEO of Binance, Mr. Changpeng Zhao, faced the announcement of SEC. It was a serious allegation of activities unsanctioned by the SEC. Also, the report of hypothetical operations to deceive, conflicts of interest, and calculated evasion of the law.

The agency allegations did not target only Binance but also another company BAM.
The agency seems concerned about the fact that unregistered securities
such as BNB, and BUSD, through the features of Vault and "Simple Earn" in the Binance app are available to USA investors. The agency regulators affirm that Binance knew that a major part of the subscriber to trade on the company's platforms were Native of the United States of America, yet the CEO of Binance allegedly did not act to respect the regulations concerning the offer and sales of unregistered security to investor on the USA.

In addition, BAM has allegedly a staking form of investment non-sanction by the agency.

Cryptocurrencies in the storm

The SEC doesn't limit her accusation to BNB and BUSD. Several cryptocurrencies have been targeted as violations of the regulation according to the agency for US investors.

I have read on the Binance news feed that Solana, Cardano, Polygon, Filecoin, Cosmos, Sandbox, Decentraland, Algorand, Axie Infinity, and Coti, were on the list of cryptocurrencies after the investigation of the SEC.

The lawsuit alleges that Binance on first hand mishandled US investors' funds, then misled investors and regulators, and finally broke securities rules

Binance's strong response

After the event, Binance as a collective clearly announced their regrets for the path chosen by SEC as opposed to the discussion previously established and maintained by both parties.

Binance's CEO stressed the fact that his company has always done its best to answer the agency's concerns over the year and agreements were found in certain cases.

Binance and the entire team through the address of the CEO on Twitter assures that the systems are stable. The user's assets have never been at risk and all withdrawals or deposit transactions will be completed.

In conclusion, this SEC lawsuit shook the market for more than three days. I believe that the value of major tokens on the platform will continue to fall for a longer period. The entire crypto community is behind Binance to solve this difference of opinions between SEC and Crypto exchange through negotiation.

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I invite you, dear readers, to share in the comment section whatever suggestions or questions you would like to ask.

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Warm regards

Disclaimer: This Article's purpose is only educational. I am not a financial advisor. Just a random blogger on the internet. Please never put in crypto more than you can afford to lose.



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3 comments
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Binance is no saint in the crypto space but SEC is simply on a mission to keep attacking crypto through every means possible.

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Peace Brother,
I agree
The community will adapt and find a way to decentralize all exchanges.
It is a model developed on Hive that is a great example that can inspire the migration of many projects.
The market users are learning how the weather the storm, yet more stiff measures will come against crypto.
Thank you
!PIZZA

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