Binance.US Fraud and SEC : Towards A Settlement?

The U.S. Securities and Exchange Commission (SEC) continues to look for evidence of a possible Binance.US fraud. According to a recent report, the regulator suspects that Binance.US had a backdoor to control customer assets, similar to the FTX case.

SEC suspects a Binance.US fraud similar to FTX

According to a article in the Wall Street Journal on November 27, the Securities and Exchange Commission (SEC) still suspects Binance.US for embezzling customer funds just like the scandal FTX recently revealed. This information comes from a federal court hearing.

At the hearing, lawyers for Binance.US urged the judge Zia Faruqui in charge of the case SEC versus Binance, to put an end to the investigation into potential fraud by the US Securities and Exchange Commission. They argued that the SEC had no tangible evidence to demonstrate that Binance.US had actually committed a crime.

They also stressed the serious repercussions of the case: since the SEC filed suit in June, the assets of Binance.US have melted by 90% and the number of users has dropped!

Faced with these arguments, the judge Zia Faruqui, was conciliatory. He felt that the recent agreements reached by Changpeng Zhao (CZ) and Binance with U.S. Department of Justice undermined the SEC’s fraud charges.

“There comes a time when I have to take a leap of faith and decide enough is enough”, he said.

Towards an amicable outcome for Binance in the USA?

Following these statements, Judge Faruqui ordered the SEC and Binance.US to reach an out-of-court settlement by December 15. He enjoined them to keep him informed of their progress.

For his part, the former CEO CZ is currently trying to obtain permission to leave the USA until his trial in February 2023. Remember that he had pleaded guilty with Binance to money laundering and agreed to pay a record fine of $4.3 billion.

Nevertheless, the U.S. Department of Justice is currently opposing his request. However, a court decision is expected shortly. If it is favorable, Mr. Zhao could return for a few weeks to the United Arab Emirates (UAE), his usual home.

The outcome of this legal battle of the titans remains uncertain. Nevertheless, the various parties seem willing to negotiate a compromise to stop the bleeding and turn the page on this resounding scandal. Should we expect peaceful days for in the USA from 2024 onwards?