Binance.US Claims SEC Labeled Firm Fraudulent Without Evidence
The SEC has labeled Binance.US as “a cauldron of fraud,” impacting its banking relationships and USD fiat operations without providing evidence in court, according to interim CEO Norman Reed. Key points include:
- In June 2023, the SEC sued Binance and its owner Changpeng Zhao over alleged securities law violations.
- Binance agreed to a $4.3 billion settlement with U.S. authorities; Binance.US was not involved.
- Binance.US has faced significant operational challenges, losing customers and laying off 70% of its staff due to the lawsuit.
- Reed anticipates revitalizing USD fiat services in the coming weeks and is pursuing partnerships with banks.
- The SEC's actions have been compared to “Operation Chokepoint 2.0,” which aims to debank crypto businesses.
- Despite thorough examinations by various agencies, only the SEC targeted Binance.US.
- The SEC's claims of client fraud were unsupported by evidence in court.
Reed emphasized the resilience of Binance.US, stating the company is stronger now and aims for a successful turnaround after enduring regulatory scrutiny.