Binance’s rebuttal challenged the SEC’s jurisdiction and priorities, igniting a regulatory turf war.
Congressional Concerns and Additional Lawsuits
Senators Warren and Van Hollen escalated the drama, urging a DOJ probe into Binance’s potentially misleading congressional statements. The company’s legal woes expanded with a CFTC lawsuit over suspected money laundering and terrorist financing negligence.
Binance Pays $4.3B To Settle DOJ Charges: Anonymity and Unregistered Securities
The SEC’s charges highlight Binance’s anonymous customer trades, defying global anti-money laundering norms, and its failure to register crypto products as securities.
The BAM Trading Allegation: A Shadow Operation
The SEC’s narrative suggests BAM Trading, set up to run Binance’s U.S. operations, was a mere front, with Zhao keeping a tight grip on its U.S. affairs and continuing to serve U.S. customers on Binance.com, contrary to public claims.
This settlement not only reshapes Binance’s future but also signals a new era of accountability in the cryptocurrency world.
