Binance Claims SEC Charges are Aimed at Making Headlines – ‘Limited in Reach’

SEC Chair Gary Gensler said:

Gary Gensler

Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”

He adds that Zhao and Binance “misled investors” about risk controls and corrupted trading volumes while “actively concealing who was operating the platform.”

He continued:

They attempted to evade US securities laws by announcing sham controls that they disregarded behind the scenes so that they could keep high-value US customers on their platforms.”

In response to the claims on Monday, Binance issued a statement denying the charges, declaring they are disappointed and have “actively cooperated with the SEC’s investigations and have worked hard to answer their questions and address their concerns.”

The crypto exchange said it would defend its platform vigorously, adding that the SEC’s refusal to productively engage with the platform is another example of its “misguided and conscious refusal” to provide clarity and guidance to the digital asset industry.

“The SEC’s real intent here, instead, appears to be to make headlines,” argues Binance. The company said it will continue to cooperate with regulators and policymakers in the US and globally but acknowledged that “because Binance is not a US exchange, the SEC’s actions are limited in reach.”

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