attorneys in Seattle reportedly asked financial firms to hand over records of communication with Binance because of its proximity to its collapsed competitor. Investigations picked up after the bankruptcy of mega crypto exchange FTX last November. Just in April, lawyers hit Binance boss Changpeng Zhao and his exchange with a $1 billion civil lawsuit for allegedly touting unregistered securities and paying celebrities to help do so. The CFTC, SEC, and IRS have all opened investigations into the exchange and Department of Justice prosecutors in December were reportedly weighing up whether to aggressively go after the exchange or take time to review more evidence. Major regulators-mainly American ones-have been on Binance’s tail for some time now. In the May 18 filing, Binance adds that the “investigation order has no legitimate purpose” and that the exchange has already exited Ontario and Canada.Ī hearing on whether the investigation will be dropped will take place on June 2, according to Capital Market Tribunal documents.īinance isn’t the only crypto firm to find Canada a difficult place to do business: yesterday, digital asset exchange Bybit said it was leaving the country, and OKX in March announced it was pulling out, citing “new regulations.” Binance Lowest Fee Crypto Exchange for Trading Coinbase One of the Best Bitcoin Exchanges in Canada for Beginners Kraken Top Cryptocurrency Exchange in Canada for Margin Trading. The exchange asked the Securities Commission to then drop the investigations-claiming it was “extremely broad” and “issued without any actual factual basis.” However, cryptocurrency prices slumped on news of the SEC lawsuit.Binance days later announced that it was leaving the country due to “new guidance related to stablecoins and investor limits.” The SEC charges come after the Commodity Futures Trading Commission (CFTC) filed similar allegations against Binance and Zhao earlier this year.īinance is a privately held company whose stock is not traded on a public exchange. Zhao dismissed the charges on Twitter, saying “4,” a popular refrain in Binance’s community urging users to ignore fear, uncertainty, and doubt. Lastly, the SEC accuses Binance of engaging in “wash trading,” where it traded with itself to artificially prop up the price of cryptocurrency assets. The crypto exchange is also accused of mixing customer funds with Binance’s own money, similar to the allegations against bankrupt crypto exchange FTX, which collapsed last fall. The SEC also alleges that Binance and Zhao used market-making companies that they controlled to inflate trading prices and profit off their customers’ funds. location and submitting compliance documents to obscure their country of origin. The SEC alleges Zhao ordered evasion plans for high-net-worth customers, using a VPN service to hide their U.S. He grew up in Vancouver and received a computer science degree from McGill University in Montreal. in revenue, most of which came from transaction fees, between June 2018 and July 2021, according to the SEC.Ĭhangpeng Zhao, also known as “CZ,” is a 46-year-old Canadian citizen. Best Cryptocurrency Trading Platforms in Canada There are several ways to buy and sell cryptocurrencies in Canada. law enforcement and securities regulations.īinance earned $11.6 billion U.S. 0.20 trading fee Get a 50 bonus when you deposit 200 Rating visit coinsmart Read review Read on to learn about the top crypto apps and what they offer. The complaint further alleges that Binance.US was created as a shield or front for the main company so that it could evade U.S. investors trade on Binance’s unregulated international exchange. Fees are even lower on Binance’s futures trading platform, starting at 0.02 for makers and 0. The SEC alleged in its charges that Zhao worked to subvert Binance’s controls and allow high net worth U.S. The American regulator claims that Binance and its CEO Zhao conspired to take billions of dollars worth of user funds and funnel them to a European company controlled by Zhao. Securities and Exchange Commission (SEC) has filed 13 charges against Binance, the world’s largest cryptocurrency exchange, and its Canadian founder Changpeng Zhao.
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