Binance
SEC Rules Binance Coin (BNB), Solana, Cosmos (ATOM), Polygon (MATIC), and Other Altcoins as Securities – Will Prices Drop to $0?
The US Securities and Exchange Commission (SEC) strikes again with another list of cryptos that it believes are securities. In its lawsuit against Binance, its CEO Changpeng Zhao, and Binance U.S., SEC listed 12 tokens namely; “BNB (BNB), Binance USD stablecoin (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS,) and Coti (COTI),” as securities.
Earlier this year, SEC Chair Gary Gensler stated categorically in an interview with the New York Magazine that only Bitcoin is not a security.
In the lawsuit, SEC accused Binance of unlawfully engaging in several unregistered offers and also selling crypto asset securities as well as other investment schemes. On another point, Binance Services under the leadership of Changpeng Zhao reportedly offered three security functions without a license.
These are exchange, broker-dealer, and clearing agencies. According to the SEC, CZ took a calculated plan to evade registration required under the federal securities law. It is reported that he created BAM Management and BAM Trading in the US to deceive the public and the authorities.
As one part of this plan to evade United States regulatory oversight over Zhao, Binance, and the Binance.com Platform, Zhao and Binance created BAM Management and BAM Trading in the United States and claimed publicly that these entities independently controlled the operation of the Binance.US Platform.
Behind the scenes, however, Zhao and Binance was intimately involved in directing BAM Trading’s U.S. business operations and providing and maintaining the crypto asset services of the Binance.US Platform.
Binance and CZ are Accused of Aiding US Customers Access the Platform
Another plan by CZ as claimed by the lawsuit was to consistently claim to the public that the platform does not provide services to US persons. However, it was concealing US data to enable them to trade. In 2019, it can be recalled that Binance announced implementation controls to block US customers from accessing the platform.
