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SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

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Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#41

Post by anonymousab »

rkagerer wrote: post #12
JumpCrisscross wrote: post #8

Earlier quoted context omitted.

> presume he is not based or living in the US Zhao “unlawfully solicited U.S. investors to buy, sell, and trade crypto asset securities through unregistered trading platforms” while “raising approximately $200 million from private investors” and “direct[ing] Binance to assist certain high-value U.S. customers in circumventing…controls and to do so surreptitiously” [1]. [1] https://www.sec.gov/files/litigation/complai…

If he's outside the US and the country he is in had an extradition treaty with the US, but has no comparable law in the books, wouldn't that impede extradition?

That would depend on the contents of that extradition treaty.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#42

Post by JumpCrisscross »

fallingknife wrote: post #30
misnome wrote: post #23

Earlier quoted context omitted.

Ah yes, the “offhand comment by someone years before they took a position indemnifies you business for all behaviour infinitely into the future no backsies” law

If by "offhand" you mean the former head of the CFTC giving a lecture in the class he teaches on the subject at MIT while at the same time the SEC is also not taking any actions against crypto exchanges. There isn't a "no backsies" rule, but then you will have to tell me what changed about crypto between 2018 and now that made it pass the Howey test then and fail it now if you want me to believe that the government i…

Has any crypto exchange been sued by the SEC for solely providing Bitcoin and Ethereum trading? That might be the vast majority of the market Gensler references, which would make his 2018 statement both remarkably prescient as well as consistent with this complaint.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#45

Post by c2h5oh »

JumpCrisscross wrote: post #14
rkagerer wrote: post #12

Earlier quoted context omitted.

If he's outside the US and the country he is in had an extradition treaty with the US, but has no comparable law in the books, wouldn't that impede extradition?

> wouldn't that impede extradition This is a civil complaint. Nobody is demanding extradition as no crimes are alleged. If Zhao is dumb enough to blow off the courts, the DoJ will get involved.

This is a civil complaint, but it describes things that can be criminal, e.g:

a failure to do KYC required to block transactions with sanctioned people/entities - that can very much be criminal with a max of 20 years iirc.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#46

Post by JumpCrisscross »

c2h5oh wrote: post #45
JumpCrisscross wrote: post #14

Earlier quoted context omitted.

> wouldn't that impede extradition This is a civil complaint. Nobody is demanding extradition as no crimes are alleged. If Zhao is dumb enough to blow off the courts, the DoJ will get involved.

This is a civil complaint, but it describes things that can be criminal, e.g: a failure to do KYC required to block transactions with sanctioned people/entities - that can very much be criminal with a max of 20 years iirc.

> it describes things that can be criminal

There is probably a case, but I don’t see anything that would make Zhao a priority for the DoJ. Maybe that will surface as he responds (or refuses to).

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#47

Post by dgfitz »

zarzavat wrote: post #16
colesantiago wrote: post #10

This is brilliant. I really want crypto to fade away out of existence and into irrelevance, FedNow is coming soon and we don't need crypto or shady crypto exchanges like Binance. Glad to see the US taking action.

95% of people don’t have a bank account in the US.

and 77.34% of statistics are made up on the spot.

https://www.federalreserve.gov/publications/2019-economic-we...

6%

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#48

Post by anonu »

boring_twenties wrote: post #7
anonu wrote: post #5

And BTCUSD down sharply on the news... The crypto winter will be a long one. Link is broken. Here's the SEC press release: https://www.sec.gov/news/press-release/2023-101 And the full 136 page complaint: https://www.sec.gov/files/litigation/complaints/2023/comp-pr...

It's down ~2.5% to a level last seen ... a week ago. That is not "sharply" by any stretch of the imagination.

"Sharply" is anchored on where the price was just before announcement. Not where it was a week ago... Price moved on the news...

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#49

Post by alphanullmeric »

colesantiago wrote: post #10

This is brilliant. I really want crypto to fade away out of existence and into irrelevance, FedNow is coming soon and we don't need crypto or shady crypto exchanges like Binance. Glad to see the US taking action.

CBDCs are exactly why crypto will always be around. Spying on other people’s money is not a basic human right.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#50

Post by jeroenhd »

gadnuk wrote: post #40

> In one instance, the Binance chief compliance officer messaged a colleague that, “[w]e are operating as a fking unlicensed securities exchange in the USA bro.” Source: https://twitter.com/JohnReedStark/status/1665748594421297152 This is a legendary quote from the filing.

I get why you would say something like that in astonishment.

By why would you ever send that out over a medium that'll leave a paper trail?

Thank goodness that criminals aren't very smart. Their idiocy is doing society a huge favor.

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