Binance.US is now accused of committing “wash trading”
The cryptocurrency exchange received these accusations from the United States Securities and Exchange Commission (SEC)
Binance.US, the US arm of the renowned global cryptocurrency platform Binance, is in the midst of serious wash trading allegations brought by the US Securities and Exchange Commission (SEC). This practice consists of an entity carrying out fictitious operations with itself, creating an illusion of activity in the market.
Despite Binance.US strongly denying these allegations, the lawsuit filed by the SEC and the ongoing investigation by the Department of Justice have had significant repercussions. Several senior officials have submitted their resignations, and the platform has experienced a notable decline in its market share.
Legal documents reveal that the SEC has been investigating Binance.US since 2020, highlighting evidence of hundreds of millions of dollars in trades on the cryptocurrency exchange. The regulator recently filed a lawsuit against Binance and its entities both domestically and globally, including its CEO Changpeng Zhao, accusing them of conducting unregistered securities exchanges.
The impact on the market and the regulatory challenges have been notorious. Following the SEC’s lawsuit, Binance.US’s market share dropped sharply, reaching less than 1 %. Additionally, many clients have been forced to withdraw their funds due to the uncertainty surrounding the platform.
On the other hand, although the parent company Binance also faced some regulatory challenges, it has managed to maintain a significant part of the global cryptocurrency market. Although its market share has decreased from 60 % to 52 % since the beginning of the year, it is still one of the leading platforms in the industry.
The situation for Binance.US remains fluid as the investigation and legal process continue to unfold. The cryptocurrency market remains vigilant about how these allegations and regulatory fallout may affect the perception and operation of the exchange.
K. Tovar
Source: Criptotendencia
(Reference image source: Kanchanara, Unsplash)
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