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- 🤠 Binance: Billion-Dollar Bullseye or Regulatory Rodeo? – Proof of Intel
🤠 Binance: Billion-Dollar Bullseye or Regulatory Rodeo? – Proof of Intel
Kimchi
June 05, 2023
GM, Web3 Warriors! This is Kimchi from Proof of Intel (PoI), your go-to place for tech and crypto news sprinkled with a dash of humor.
BINANCE IN HOT WATER? 🚰🔥
Holy Satoshi, we've got a spicy one today. Binance, our favorite billion-dollar crypto exchange, and its tycoon founder Changpeng Zhao, are under the spotlight. And this time, it's not for their 24-hour trading volume. The SEC has decided it wants a front-row seat to the crypto circus, and it's come bearing 13 charges.
The SEC just labeled 3 gaming tokens as securities.
Sand (@TheSandboxGame)
Mana (@decentraland)
Axs (@AxieInfinity)
They are technically 2 metaverse tokens and 1 game token, but I don’t think they discern between the difference.
— Jonah 🎮 (@RealJonahBlake)
4:05 PM • Jun 5, 2023
The SEC going harder at Binance/Coinbase/Kraken/Ripple than it ever did at FTX. That about says all you need to know about the situation.
— Otto Suwen (@OttoSuwenNFT)
4:43 PM • Jun 5, 2023
ACCUSATIONS GALORE 🔍💥
Apparently, Binance and Zhao have been accused of mixing user funds with their own and sending them on a Eurotrip to a company that Zhao controls. Looks like someone didn't get the memo that 'sharing is caring' doesn't apply to user funds!
As if that wasn't enough, the SEC alleges that Zhao, Binance, and their rulebook have had a bit of a falling out. They're accused of turning a blind eye to their own controls, allowing high net worth U.S. investors to continue trading on Binance's unregulated international exchange.
And here's the kicker: Binance has been accused of describing itself as a "[f---ing] unlicensed securities exchange in the USA bro." You can't make this stuff up, folks.
SHIELD AND SWORD 🛡️⚔️
According to the SEC, the plot thickens with Binance.US, created as a protective shield to draw attention away from the main company and Zhao, and handle potential law enforcement issues. Two Binance.US CEOs even testified about Zhao's undue level of control.
FROM PROFIT TO PROBLEM 📈🚫
Binance raked in an impressive $11.6 billion in revenue from June 2018 through July 2021, mainly from transaction fees. However, the SEC has accused the exchange of luring U.S. customers, all under Zhao's master puppeteering, in violation of federal law.
SEC sues @binance, but no major withdrawals from Binance. User balances are increasing actually.
cryptoquant.com/asset/btc/char…
— Ki Young Ju (@ki_young_ju)
5:52 PM • Jun 5, 2023
BSC ecosystem takes 10% of their reserves.
cryptoquant.com/analytics/dash…
— Ki Young Ju (@ki_young_ju)
5:52 PM • Jun 5, 2023
BINANCE'S MAGIC TRICKS 🟨🎩
Get ready for the grand finale. Zhao is said to have ordered the creation of an evasion plan for high net worth customers, using a VPN service to disguise their U.S. location and submitting compliance documents to blur their country of origin.
On top of that, the SEC alleges that Binance and Zhao employed market-making companies under their control to inflate trading prices and profit off customers.
ZHOU'S REBUTTAL 🤺💢
Despite the drama, Zhao appears unflustered, responding to the charges on Twitter with a cryptic "4," Binance's community catchphrase to brush off fear, uncertainty, and doubt, or "FUD."
So, there you have it, folks. A full plate of lawsuits and accusations served up hot from the SEC. Keep your eyes peeled on PoI as this rollercoaster story unfolds. Kimchi out.
Intel Drop #