The former Chief in the SEC Office of Internet Enforcement suggests the SEC has reason for excitement following Binance’s settlement with the U.S. Department of Justice yesterday.
Stark states the SEC now has a treasure trove of Binance-related evidence from various pleadings, including the admittance of the facts in the Nov. 21 plea.
Proof against Binance
Stark reports that the SEC now has a new evidentiary record of wide-ranging allegations and assertions, which together create a cannon fodder for SEC investigators and litigators to strengthen their Binance-related accusations.
As part of this finding, he calls out independent monitorships, specifically in the part of the plea agreement that states Binance must retain a monitor for three years. As just one of multiple monitorships mandated by the U.S. Department of Justice, Stark alleges that the FinCEN and the U.S. The Treasury Department will undoubtedly create extraordinary opportunities for Gary Gensler and the rest of the SEC’s investigative and litigation teams to identify new evidence.
Stark also states that when the SEC references criminal conduct at the world’s largest exchange, the characterizations will now be a fact rather than hyperbole.
Allegations against Zhao
As of June 5, the SEC was alleging that Binance and CEO Changpeng Zhao had woven an “extensive web of deception” by lying to both regulators and its customers. The 13-claim complaint suggests Zhao was diverting customer funds to another entity owned by him that would allow the exchange’s U.S. customers to trade on its main platform despite publicly declaring the contrary.
The SEC also alleged that Binance failed to register its own crypto products as securities offerings, including BNB and Binance USD, and several lending products.