Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»ADOPTION NEWS»SEC Links Terraform Ruling to Binance in Securities Violation and Fraud Case
ADOPTION NEWS

SEC Links Terraform Ruling to Binance in Securities Violation and Fraud Case

By Crypto FlexsJanuary 5, 20242 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
SEC Links Terraform Ruling to Binance in Securities Violation and Fraud Case
Share
Facebook Twitter LinkedIn Pinterest Email

The U.S. Securities and Exchange Commission (SEC) filed the application on January 3, 2023, in the U.S. District Court for the District of Columbia. The filing documents a lawsuit against Terraform Labs, its co-founder Dohyun Kwon, and Binance, Binance.US and Zhao ChangfengFormer CEO of Binance.

The SEC’s filing drew attention to Judge Jed Rakoff’s Dec. 28 ruling against Terraform Labs and Do Kwon. In this ruling, Judge Rakoff sided with the SEC and found that certain tokens involved in the alleged Terraform fraud were securities. This is an investment contract and the basis is that the offer and sale of UST constitutes an investment contract.​​​​​

The SEC highlighted the relevance of Judge Rakoff’s analysis of Terraform’s ‘stablecoin’ UST to the lawsuit against Binance’s ‘stablecoin’. BUSD, Binance’s Staking-as-a-Service, BNB Vault, and Simple Earn programs. This connection was highlighted in the January 3 filing, which suggests Terraform Labs’ ruling could provide “additional grounds” for Judge Amy Jackson to consider denying Binance’s motion to dismiss.

The charges against Binance and Zhao include operating an unregistered exchange, broker-dealer, and clearinghouse. Misrepresenting trading controls and oversight on the Binance.US platform and offering and selling unregistered securities. The SEC alleges that while Zhao and Binance claimed that U.S. customers were restricted from trading on Binance.com, in reality high-value U.S. customers continued to trade on the platform. Moreover, Binance.US is known to be independent but is reportedly secretly controlled by Zhao and Binance.​​​​​​​

SEC Chairman Gary Gensler accused Zhao and Binance of engaging in a “widespread web of fraud” that included conflicts of interest, lack of disclosure, and evasion of the law. The SEC’s complaint alleges that since at least July 2017, Binance.com and Binance.US, under Zhao’s control, have operated as exchanges, brokers, dealers and clearing agents, generating at least $11.6 billion in revenue from U.S. customers.

The SEC also charged Binance with BAM Trading for the unregistered offer and sale of BNB, BUSD and cryptocurrency lending products and the unregistered offer and sale of Binance.US’ stake-as-a-service program. I did. The complaint states that Binance secretly controls assets staked by U.S. customers in BAM’s staking program.

The Terraform Labs and Binance cases are part of a series of SEC enforcement actions in 2023 alleging that the platforms offered unregistered securities. These actions include lawsuits that: coinbaseThis indicates that regulation of the cryptocurrency sector, including Ripple and Kraken, is becoming more extensive.

Image source: Shutterstock

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

Gala Games improves leader board rewards and introduces preference systems.

June 20, 2025

Ether Leeum Whale starts a $ 11 million leverage betting in the 30% increase in ETH prices.

June 12, 2025
Add A Comment

Comments are closed.

Recent Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

No Altcoin Season 2025 ? Why Bitcoin Dominance Is Holding Strong In The Crypto Market

June 28, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025
Most Popular

Bitcoin technical analysis: Oscillators and moving averages paint a complex picture.

February 26, 2024

Cryptocurrency experts predict a massive price surge in the price of XRP. Could it be $20?

April 10, 2024

Currently the most popular cryptocurrencies on the Ethereum chain – ETHENA, Spectra CHAIN, HashAI

April 12, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.