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SEC notified of Binance liquidation scandal: Towards a strict audit?

Thu 24 Aug 2023 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Regulation

The Binance liquidation scandal has taken another turn. US regulators, recently informed of the situation, may initiate an in-depth audit of the platform. A resounding event reminiscent of the beginnings of the FTX collapse.

SEC notified of Binance scandal

Crypto lawyer demands SEC audit of Binance

In an unexpected turn of events, Binance, a major crypto player, finds itself at the heart of a major controversy.

Yesterday, prominent crypto lawyer John Reed Stark called on the Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA), urging them to intervene swiftly to conduct a thorough investigation into Binance’s current situation.

This initiative stems from the platform’s sudden suspension of SEPA credit transfers, sending shockwaves through the crypto community.

Promptly reacting to the suspension of EU withdrawals, John Reed Stark said on Twitter:

“The SEC and FINRA should immediately send a team of auditors, inspectors and examiners to investigate what happened and, if appropriate, refer the matter to the SEC Enforcement Division or even DOJ. Oh wait, Binance is not registered. Never mind. Caveat Emptor.”

This announcement had an immediate impact on the BNB share price. Over the past 24 hours, BNB has fallen by over 4%, reaching a one-year low of $208.

This announcement had an immediate impact on the BNB share price. Over the past 24 hours, BNB has fallen by over 4%, reaching a one-year low of $208.

It should be remembered that Binance is facing a scandal linked to the liquidation of its loan on Venus, a case that is sparking heated debate within the crypto community. In addition, the exchange has taken the decision to withdraw from several European Union countries in recent months, the latest example being its withdrawal from the UK.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.