SEC sues Binance and CZ

[bbc.reporter]

News update.

Who is this we Gensler is talking about? Shaking my head because it appears he is trying to speak for everyone.

This Gensler does not answer the calls for the cryptospace's need and questions for regulatory clarity. He would prefer to use fear tactics and lawsuits to enforce the old rules that have become questionable in regulating the cryptospace.

This statement also appears that he is announcing that he wants an effective ban and his actions have been trying to make it a reality.



U.S. Securities and Exchange Commission Chair Gary Gensler took to live television on Tuesday to say there is no need for more digital currencies.

“We don’t need more digital currency. We already have digital currency. It’s called the U.S. dollar. It’s called euro. It’s called the yen. They’re all digital now,” said Gensler on CNBC's Squawk Box.

Source https://www.theblock.co/post/233295/gary-gensler-crypto-coinbase-binance

This shouldn't come as a surprise to many. This was expected. It wasn't a matter of if but when. Now, finally, the lawsuit was filed.

Depending on how the case develops, I don't think Binance would just "leave the US market completely." It's too huge to just abandon. As a matter of fact, I completely understand why Binance is acting differently on this one. While Binance quickly packed up, didn't even put up much of a fight, and left a number of countries due to regulatory and other legal challenges, it has now promised to defend itself "vigorously."

There will also surely be a lot of backchanneling and backstage negotiations on this one.

I reckon it might be more advantageous for them as a business to leave the jurisdiction where they are not wanted and return when there is regulatory clarity. They will be wasting much funds on lawsuits that might not get a resolution until years later.

[Tsp_exchange]

New day, new problems for Binance and CZ in the US. After getting sued by CFTC earlier this year, this time SEC sued them them for breaking US securities rules.

Looks to me like its just the matter of time when Binance leaves US market completely, whether they want it or not.  

https://tokenist.com/sec-sues-binance-and-changpeng-zhao-alleging-securities-laws-violation/

After the Binance and coinbase is sued by SEC,maybe more people will choose the DEX,do you think so?

[malcovi2]

SEC is really releasing everything on Binance and now they want to freeze Binance US and this news cause a large outflow of funds out of Binance
https://cointelegraph.com/news/binance-us-user-funds-safe-amid-sec-injunction-freeze-assets

Binance users have withdrawn over $3B across multiple chains since the announcement
https://twitter.com/nansen_ai/status/1666145237474095104

[Rikafip]

After the Binance and coinbase is sued by SEC,maybe more people will choose the DEX,do you think so?

Nope. At least not in a significant measure.

If fall of first Mt.Gox and then FTX didn't make people move away from centralized exchanges, I don't think these measures will either. All it will eventually lead to is more restrictions & regulations and that's about it.

[ultrloa]

After the Binance and coinbase is sued by SEC,maybe more people will choose the DEX,do you think so?

Nope. At least not in a significant measure.

If fall of first Mt.Gox and then FTX didn't make people move away from centralized exchanges, I don't think these measures will either. All it will eventually lead to is more restrictions & regulations and that's about it.

Exactly there are still other choices to pick and binance is not the only legitimate operating around. So I guess the old binance.us users will find another alternative so that they can continue to trade or do any transaction on exchangers.

But I also hope that Binance will not get affected on this what so called government harassment and continue to operate outside US.

[bbc.reporter]

If anyone does not see this lawsuit as a surprise, do you know what would come as a surprise? The allegation in this article hehehe. This shows Gary Gensler's hypocrisy. There was also a video of him where he was shilling Algorand, telling his listeners in MIT that Uber could be built in this blockchain hehehehe. I am starting to speculate that he might have lost a big investment in an altcoin somewhere which might have also triggered his personal war against the cryptospace.



Binance lawyers allege SEC Chair Gensler offered to serve as advisor to crypto company in 2019

SEC Chair Gary Gensler, who is in the midst of a hefty crackdown on crypto companies, offered to serve as an advisor to Binance’s parent company in 2019, according to the lawyers for Binance and founder Changpeng Zhao.

Documents filed by the SEC on Wednesday indicate that attorneys from Gibson Dunn and Latham & Watkins, two of Binance’s law firms, allege that Gensler offered to serve as an advisor to the crypto exchange in several March 2019 conversations with Binance executives and Zhao. He eventually met Zhao in Japan for lunch later that month, the filing claims.

Source https://www.cnbc.com/2023/06/07/binance-lawyers-say-sec-chair-gensler-offered-to-be-advisor-in-2019.html

[Darker45]

~snip~

I reckon it might be more advantageous for them as a business to leave the jurisdiction where they are not wanted and return when there is regulatory clarity. They will be wasting much funds on lawsuits that might not get a resolution until years later.

That may be true, but as I've said, this is a different story because this involves the US market. This isn't Thailand's or the Philippines'. I don't have the figures, but I think the US market is a huge contributor to Binance's revenue. So from a business perspective, to fight for it is still the best way to go. After all, Binance definitely has expensive law firms on retainer. So they are just being put to work now.

That this suit will drag on for years is to Binance's advantage in a way. They continue to operate and earn big day after day while they are dealing with their legal obstacles.

Also, they don't have much choice anymore now that the lawsuit has already been filed. They will have to face it.

[bbc.reporter]

@Darker45. As a user of crypto and an enjoyer of the innovation it brings, I wish for Binance to win the case because a win for them will certainly be a victory for the cryptospace and its community of users.

Also, who would be happy to witness this joker Gensler and the old grandmas Elizabeth Warren, Janet Yellen get the win? We should be scratching our heads if we see someone in the forum cheering for them.

[Darker45]

@Darker45. As a user of crypto and an enjoyer of the innovation it brings, I wish for Binance to win the case because a win for them will certainly be a victory for the cryptospace and its community of users.

Also, who would be happy to witness this joker Gensler and the old grandmas Elizabeth Warren, Janet Yellen get the win? We should be scratching our heads if we see someone in the forum cheering for them.

I've never been a huge fan of Binance, even though I was a user for some time. Also not a fan of CZ. And I'm also in favor of heavily regulating centralized exchanges. But I would never agree with the seemingly selective judgements of SEC and Chairman Gensler. If Binance's CZ is right, SEC has never filed a lawsuit against FTX. That's too obvious a bias. FTX has actually hurt users in more ways than one when it went bankrupt. Binance at least is still serving its users until now.

I also don't agree with Bitcoin supporters cheering for the SEC for going against Binance. However, although Gensler is a hypocrite and SEC is corrupt, I wish that the case be solely decided on the merits and not on some external factors or prejudices.

[onecall123]

It's not a battle between the SEC and CZ/Binance, but rather between the SEC and the entire cryptocurrency industry.

It's amazing how much things have changed over time. The United States, once known as the "Land of the free," seems to have taken on a different role in recent years.

What's concerning is the level of corruption that exists in the US, than any third-world countries. What's even more ironic is that the SEC didn't sue FTX. Now the SEC are targeting legitimate businesses that have been trying to work with regulators in good faith for for years after years.

[Rikafip]

If anyone does not see this lawsuit as a surprise, do you know what would come as a surprise? The allegation in this article hehehe. This shows Gary Gensler's hypocrisy. There was also a video of him where he was shilling Algorand, telling his listeners in MIT that Uber could be built in this blockchain hehehehe.

Hah yeah, I saw that news yesterday and it really made me chuckle. Hopefully it will show to general public what kind of clown Gary Gensler actually is.

I am starting to speculate that he might have lost a big investment in an altcoin somewhere which might have also triggered his personal war against the cryptospace.

Maybe that, and/or being pissed of that he wasn't given role of a Binance advisor. Either way, there is probably a personal reason for being so angry at crypto.

[eaLiTy]

I'm not familiar with the legalities here but what I can't seem to understand is why is CZ still running Binance.us with everything that has been happening with BUSD and the CFTC lately.

It is evident that the SEC Chairman Gary Gensler is targeting the big leagues with the claim that cryptocurrencies are securities and they sued coins earlier when they targeted XRP and now they are targeting exchanges. If they back down and move out SEC will start targeting other smaller exchanges and crypto related businesses, Let the big teams fight for the rights rather than surrendering.

[OmegaStarScream]

So it looks like Binance U.S is preparing to suspend US dollar deposits and withdrawals. If you have any funds there, make sure to withdraw ASAP:

https://www.theguardian.com/business/2023/jun/09/binanceus-prepares-to-suspend-us-dollar-deposits-and-withdrawals-from-exchange

From Binance's U.S twitter account:

[Taskford]

I'm not familiar with the legalities here but what I can't seem to understand is why is CZ still running Binance.us with everything that has been happening with BUSD and the CFTC lately.

It is evident that the SEC Chairman Gary Gensler is targeting the big leagues with the claim that cryptocurrencies are securities and they sued coins earlier when they targeted XRP and now they are targeting exchanges. If they back down and move out SEC will start targeting other smaller exchanges and crypto related businesses, Let the big teams fight for the rights rather than surrendering.

If CZ have legal documents or any other proof that they are not doing any illegal activities while operating in US then they should give a good fight with these guys. It will be good to let those official knows that they cannot easily move out a business without getting an appeal in court. For sure CZ can spend a lot of money to defend their selves there.


If they can defend their business maybe this could give huge confident to other smaller exchange to be prepared and they cannot be easily turn down by this greedy guys who always look after their personal interest towards certain businesses.

[bbc.reporter]

If anyone does not see this lawsuit as a surprise, do you know what would come as a surprise? The allegation in this article hehehe. This shows Gary Gensler's hypocrisy. There was also a video of him where he was shilling Algorand, telling his listeners in MIT that Uber could be built in this blockchain hehehehe.

Hah yeah, I saw that news yesterday and it really made me chuckle. Hopefully it will show to general public what kind of clown Gary Gensler actually is.

I am starting to speculate that he might have lost a big investment in an altcoin somewhere which might have also triggered his personal war against the cryptospace.

Maybe that, and/or being pissed of that he wasn't given role of a Binance advisor. Either way, there is probably a personal reason for being so angry at crypto.

@mikeywith also mentioned in another post that it is very strange that the SEC has not sued FTX hehehe. The skeptical me is starting to speculate that uncle Gary is bagholding FTT hehehehee.

In any case, in fairness to uncle Gary, he is not treating Binance differently from Coinbase. However, Coinbase is in a disadvantage because it is a public company. The SEC can request for a preview on their balance sheets and know how much assets they have left in their treasury to fight a long legal proceeding.

[yudi09]

So it looks like Binance U.S is preparing to suspend US dollar deposits and withdrawals. If you have any funds there, make sure to withdraw ASAP:

https://www.theguardian.com/business/2023/jun/09/binanceus-prepares-to-suspend-us-dollar-deposits-and-withdrawals-from-exchange

From Binance's U.S twitter account:

I'm a little late getting this information because lately I haven't been active on Twitter.
I was also surprised when I opened Twitter to see their tweets.

In the first paragraph the contents of the tweet from @BinanceUS seemed a little tense because they said the SEC was using aggressive tactics. They (binance) also said that they felt intimidated by what happened.



This is interesting when I read. The impression is like a fight.

In the second paragraph and so on, binance reassures all customers and conveys a USD deposit hold message.
Interesting to wait for the next result.

[PX-Z]

Looks to me like its just the matter of time when Binance leaves US market completely, whether they want it or not.  

It's easy to get out from the current market even though it will make a huge impact to the business' future revenue but the question is, will they be still liable and still be charged of those millions of fines, tax, charges if they get out on US market?

[bbc.reporter]

Unconfirmed news update.

According to some people in social media, the Judge who is charge of the SEC's case against Binance has denied the request to freeze Binance.us assets. I have not researched if there was a legal reason why, however, the judge might be more concerned about what it might do to the market. If this update is true, it also shows that the SEC does not care about protecting consumers when it requested for Binance.us' assets to be frozen. The market might dump again in fear if something like this goes to the news.

In any case, I am sick and I will have my rest hehe.

[Gyfts]

Take note while this is definitely not good, it's important to understand that this is a civil case NOT a criminal case; as pointed out in the below tweet. I'm not some law expert but I'd assume it's a significant difference.

https://twitter.com/WuBlockchain/status/1665751740380229632?s=20

Nearly all litigations against corporations are civil cases unless there's reckless criminal conduct. Recklessness in the sense that some level of injury or damages occurred with the knowing creation of unjustified risk and consciously disregarding such risks. Reckless criminal conduct generally does not apply in these sort of cases. Civil classification means the penalty is a fine. Criminal matters mean prison is the penalty.

The SEC isn't going to start throwing people in jail, of course. Their goal might not even be significant fines. If they can drag the legal process out long enough absent of a legal victory, it might hinder Binance from operating in the U.S. The attorneys Binance are hiring for this will range from hundreds, to thousands of dollars per hour. It isn't a cheap fight.

If it turns out Binance knowingly defrauded the U.S. government or its citizens, then this becomes a criminal matter.

[bbc.reporter]

@Rikafip. What if the SEC is getting some advice from Sam Bankman-Fried on how to manuever a good crackdown against Binance? They can also do a big short on BNB tokens similar to what CZ was speculated to have done on FTT, that he shorted the FTT futures market and did his big dump on the FTT spot market hehehe.

The skeptical me would think that Sam made a deal like this if he is freed or if he is given a very minor slap on the wrist.