June 3, 2023

SEC Accuses Binance.US of Selling Unregistered Securities

The US wing of Binance is under the threat of getting a lawsuit from SEC. The federal agency has already prosecuted the Paxos project and enforced the delisting of BUSD tokens.

Recently, an SEC official has extended the idea that the Binance US branch has been dabbling in dealing with unregistered securities. He was attending the bankruptcy hearing when issued this statement.

The SEC official in question purported that the Binance US branch has listed a suspected unregistered security token called VGX token. It is worth noting that the VGX token issued by the Voyager project is believed to violate the Securities Act according to the fresh accusations.

Lack of Proper Crypto Guidelines

SEC Senior Attorney named William Uptegrove was presenting his argument in front of Judge Michael Wiles.  Judge Wiles rules the Southern District Bankruptcy Court. However, Judge Wiles has claimed that the government of the USA and SEC has not issued sufficient guidelines for cryptocurrency projects thus far.

Under these circumstances, it is impossible to ascertain which crypto projects are aligned with the law and which fall outside of the regulatory circumference. On the other hand, Uptegrove responded that the staff members have reasons to believe that VGX is an illegal security and Binance US is involved in violating the regulatory requirements set by SEC.

Uptegrove told the judge that, thus far, SEC has not made an official case against Binance US. It is important to note that SEC prosecutes an entity after getting majority votes from its commissioners. The SEC official in question has maintained that the feelings of staff are not enough to create a case against Binance US in court.

Reflecting on the matter, a spokesperson from Binance US has told the media that the firm has been determined to work in tandem with regulators. This is not the first time that SEC has been at odds with Binance US. The firm has remained under fire from various regulatory agencies across the world since its inception.

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