Binance CEO Changpeng Zhao, also known as CZ, dismissed allegations that the crypto exchange redirected around $12 billion of user funds to companies under his control
These claims emerged following reports of fund diversion to a company called Merit Peak. Additionally, US Senators Elizabeth Warren and Chris Van Hollen urged the US Justice Department to investigate Binance, prompted by the complaint filed by the US Securities and Exchange Commission (SEC).
The SEC lawsuit claims that Binance illegally sold securities without proper registration and mixed investor funds with the company’s own funds. It is worth noting that this lawsuit closely followed a similar lawsuit filed against Coinbase by the SEC.
Also Read: SEC Lawsuits Against Binance and Coinbase Spark Unity in the Crypto Industry
Binance CEO Provides Clarification Regarding User Funds
Binance CEO Clears Up User Fund Decline Amid SEC Lawsuit. According to the CEO, all user funds, totaling approximately $2 billion, have been properly accounted for and have not been unauthorizedly removed from the Binance.US platform, unless users have withdrawn them themselves.
Reaffirming his consistent position, CZ reiterated that the SEC lawsuit is not solely targeting the exchange but is perceived as an attack on the entire cryptocurrency market. He expressed his belief that the lawsuit creates fear and uncertainty, which aligns with his previous stance denoted by the number “4.”
Also Read: SEC Chairman Gary Gensler Asserts: “We Don’t Require Additional Digital Currencies”
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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