The SEC is actively searching for more evidence that proves potential fraud at Binance US, according to a report by the WSJ. This comes after the DOJ brought charges against Binance and its former CEO Changpeng Zhao earlier this month, which he pleaded guilty to.
The SEC has had an ongoing lawsuit against Binance US since June, alleging fraudulent activity putting client funds in danger. Following Binance’s settlement with the DOJ, the SEC is looking to put the nail in the coffin. Similarly to FTX, the SEC wants to find any instances of fraud at the top crypto exchange. In particular, the commission is looking for evidence of Binance US giving CZ a backdoor to control assets on the platform like Sam Bankman-Fried allegedly had.
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The Securities and Exchanges Commission sued Binance in June, alleging that the platform operated illegal securities exchanges. To this point the SEC’s lawsuit has shown the potential of Binance to follow suit of FTX’s fraud, but little to no proof of the activity. However, the SEC likely hopes that the DOJ’s investigation into Binance and its charges will spark something in their own investigation.
In its settlement with the US government, Binance agreed to pay $4.3 billion. As CZ stepped down as CEO, Richard Teng filled in as the exchange’s new chief.