Binance might not be familiar to everyone, but it’s a significant player in the realm of cryptocurrencies. The company, started by an ex-fast food worker who became incredibly wealthy, is currently in a major legal dispute with the highest authority on Wall Street.
This showdown could determine the fate of the entire cryptocurrency sector moving forward.
This summer, the Securities and Exchange Commission filed more than a dozen charges against Binance, which operates the world’s largest cryptocurrency exchange, and its founder and chief executive, Changpeng Zhao.
The CEO of Binance, often referred to as CZ, is facing allegations of deceiving investors and running an unregistered exchange, which is considered against the law. The U.S. Securities and Exchange Commission (SEC) claims that CZ is responsible for planning a complex strategy to avoid complying with federal securities laws in the United States.
The serious accusations, which Binance is strongly disputing, are a result of a forceful effort to regulate the cryptocurrency sector. This crackdown gained momentum following the FTX crisis that occurred last year.