Crypto Exchanges Under Fire: SEC Raises Grim Accusations Against Binance US and Voyager Digital – Coinpedia Fintech News

The U.S. Securities and Exchange Commission (SEC) has accused Binance US of operating an unregistered securities exchange in the U.S. and Voyager Digital of violating federal securities laws by selling VGX tokens. These accusations were made by SEC Senior Trial Attorney William Uptegrove during a bankruptcy hearing to determine if Voyager should be sold to Binance US.

Is VGX A Security?

Uptegrove stated that the SEC staff believes, based on the facts and circumstances currently known to them, that the offering and sale of VGX tokens have the attributes of a securities transaction. This indicates that VGX tokens are likely to be considered securities and should have been registered as such with the SEC. The SEC’s accusation against Voyager Digital may have a significant impact on the company’s restructuring plan and could lead to legal repercussions.

Binance US’s “Illegal” Operations

Uptegrove also stated that the SEC staff believes Binance US is operating an unregistered securities exchange in the U.S. This accusation could potentially have a significant impact on the operations of Binance US and its parent company Binance, which has faced numerous allegations of criminal sanctions evasion, money laundering conspiracy, and unlicensed money transmission.

SEC Chair Gary Gensler Speaks Out

Uptegrove’s accusations against Binance US and Voyager Digital are in line with SEC Chair Gary Gensler’s belief that most crypto trading platforms should be registered as national securities exchanges. This would see them operate under the agency’s disclosure and compliance regime, providing investors with greater protection.

The accusations against Binance US and Voyager Digital highlight the need for transparency and accountability in the crypto industry. Several U.S. Senators have demanded transparency and accountability from Binance CEO Changpeng Zhao and Binance.US CEO Brian Shroder, with investigations revealing that Binance has facilitated over $10 billion in payments to criminals and sanctions evaders. 

The lack of transparency and accountability in the crypto industry is a cause for concern and needs to be addressed to prevent fraudulent activities.

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