SEC Intensifies Probe into Alleged Fraud at Binance US

• SEC Searches for Evidence of Potential Fraud at Binance US
• SEC's Allegations Against Binance
• Binance and the Legal Standoff
• Binance's Settlement with US Government

SEC Searches for Evidence of Potential Fraud at Binance US

There is an active investigation by the Securities and Exchange Commission (SEC) into potential fraudulent activity at Binance US, as noted in a report by the Wall Street Journal. This follows recent charges brought against Binance and its former CEO, Changpeng Zhao by the Department of Justice (DOJ), to which Zhao has since pleaded guilty.

SEC's Allegations Against Binance

The SEC has been involved in a legal dispute with Binance US since June, accusing the crypto exchange of fraudulent actions that might have jeopardized client funds. After Binance settled with the DOJ, the SEC has intensified its investigations, aiming to uncover more evidence. The objective of the SEC is similar to its probe into FTX$3.28 -5.38%, wherein it aims to identify instances of fraud at the leading cryptocurrency exchange. The commission is particularly interested in any proof of Binance US presenting Zhao with an unauthorized access to manipulate assets on the platform, a situation allegedly witnessed with Sam Bankman-Fried.

Binance and the Legal Standoff

The SEC filed a lawsuit against Binance in June alleging the operation of illegal securities exchanges. To date, the SEC's legal suit has indicated the potential of Binance to mimic FTX's fraudulent activities, albeit without concrete proof. However, the SEC is hopeful that the DOJ's investigation into Binance and subsequent charges might catalyze their investigations.

Binance's Settlement with US Government

As part of the settlement with the US government, Binance consented to pay $4.3 billion. Following his step-down as CEO, Richard Teng assumed the position of the new chief of the exchange.

Edited by Jonathan Stoker