Binance To Face US DOJ’s Criminal Charges Or Its Just A FUD: Ex-SEC Exec Hints
Crypto News: The world’s largest cryptocurrency exchange and its executive’s legal troubles seems to be intensifying from here as the U.S. top financial watchdogs decide to go after Binance. However, the former Chief executive of the U.S. Securities and Exchange Commission (SEC) suggests that the Department of Justice (DOJ) is likely to file criminal charges against Binance.
Also Read: Custodia Bank Case More Important Than Ripple Lawsuit, Says XRP Lawyer
Binance In Big Trouble?
John Read Stark, ex-head of SEC’s office of internet enforcement, hinted that the U.S. DOJ will fill or has already filed a Binance linked criminal indictment under seal. He mentioned that both CFTC and SEC complaints read more like criminal indictments to him. However, the complaint also alleges the crypto exchange of fraud, deception of law, and money laundering.
As per the U.S. CFTC complaint, Binance’s CEO Changpeng Zhao and three of its executives that operated the crypto exchange allegedly violated the agency’s statutes and regulations. It is important to note that the CFTC charged Binance’s former Chief compliance officer, Samuel Lim for assisting and abetting the exchange’s violations. Read More Crypto News Here
Stark highlighted that the CFTC presented evidence that the former COO was aware of the situation that Binance customers were there for a crime. The watchdog further alleged that the defendants assisted US VIP users in evading Binance’s compliance control.
DOJ Working With SEC, CFTC?
The U.S. SEC recently alleged that Binance and its CEO commingled billions of dollars with customer funds, which was later secretly sent to a different company controlled by CZ. However, the commission in a memorandum of support has mentioned that it has been widely reported that the world’s largest crypto exchange and CZ are under criminal authorities investigation.
This directs that the commission might be working with criminal prosecutors and the FBI, the former U.S. SEC executive suggests. He claimed that the DOJ is working with CFTC, SEC and several other whistleblowers.
Also Read: Binance CEO Refers SEC’s Chat Evidence In Internal Staff Letter
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