Crypto exchange Binance, which has been in regulators’ crosshairs for months in numerous countries, may now face new fraud charges in the United States.
That’s according to a tweet that crypto commentator Walter Bloomberg sent out Wednesday afternoon, which quickly racked up more than 141,000 views. In a separate tweet, Bloomberg noted that US prosecutors fear that pending charges could cause a run on the exchange.
Binance in the Prosecutors’ Spotlights
A US court slapped Binance CEO Chanpeng Zhao (“CZ”) with a summons in June. The counts involved offerings of unregistered investment services. Not to mention lying to investors. So the rumored fraud charges are not a surprise to everyone.
Some may have seen the new charges coming anyway, given the fear, uncertainty, and doubt (FUD) swirling around Binance and CZ.
Still, there has been an awful lot of bad news for Binance in the space of a week. On July 28, a Wall Street Journal report disclosed that Germany’s financial watchdog, BaFin, had its own share of concerns about CZ and Binance.
Reportedly as a result of BaFin’s unwillingness to approve Binance’s application for a license, Binance pulled its application last week.
Here, again, developments were merely the confirmation of rumors that had swirled. Jonas Jiinger, Binance’s German head of operations, had told a German newspaper that BaFin’s threshold was “rightly high.”
He might have been referring to the 480 days, on average, that it takes to gain a license in Germany.
And, in June, Belgium’s Financial Services and Markets Authority ordered Binance to
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Author: Michael Washburn
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