SEC charges filed against Binance Monday imposed new restrictions on cryptocurrency. It claimed that 10 tokens more were violating securities law.
The SEC deemed these tokens as securities in federal court documents: SOL ADA MATIC FIL ATOM SAND MANA ALGO AXS COTI These ten tokens, as well as others are referred to by the SEC “crypto asset securities” In its complaint.
“Defendants have unlawfully solicited US investors to buy, sell and trade crypto asset securities through unregistered trading platforms,” In a filing in court, the SEC writes:
No civil actions or criminal charges have been brought by the SEC against their respective issuers.
You can also find out more about the following: “SEC complaint against Binance and CZ alleges about every possible crypto securities law violation and loops in a ton of tokens,” Mike Selig said this in a Tweet. Mike Selig works in Willkie Digital Works and is counsel for the Asset Management Department. The “SEC doesn’t mince words: defendants’ ‘blatant disregard’ of law allowed them to ‘enrich themselves by billions…placing investors’ assets at…risk.'”
SOL (Solana’s native coin) lost up to 8 percent on Monday after the Binance case was announced. Polygon’s MATIC token and Cardano ADA’s ADA each fell by close to 6%.
The SEC alleged that Binance, which is the largest cryptocurrency exchange in the world, misappropriated funds from users. This legal action resembled the accusations brought against FTX, and its founder Sam Bankman Fried.
SEC: Binance tokens are securities
SEC also claimed Binance, its executive team and Binance engaged in unregistered trading of securities and issued them.
SEC classified Binance native BNB tokens and BUSD stablecoins as securities. It also categorized Binance related staking affiliates offering unregistered security. It is nothing new for the SEC to include additional tokens as part of a lawsuit filed against an exchange. The SEC had listed nine cryptocurrency tokens in its 2022 lawsuit over insider trades against a former Coinbase worker. This case has been settled.
Tags
- ALGO
- Binance
- SEC
- Securities
- SOL
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