Diksia.com - In the wake of Binance’s founder and former CEO, Changpeng ‘CZ’ Zhao, pleading guilty to criminal charges filed by the United States Department of Justice (DOJ), the US Securities and Exchange Commission (SEC) is intensifying its pursuit of evidence suggesting that CZ may still retain a clandestine link to Binance US user funds.
CZ’s Resignation and Ongoing SEC Scrutiny
Amidst a settlement with the DOJ that saw CZ stepping down from the CEO position, securing his release on a hefty $175 million personal recognizance bond, the SEC is reportedly on a relentless quest for indications that CZ might harbor a ‘backdoor’ entry to Binance US assets, as per a detailed report from the Wall Street Journal.
The legal saga escalated in June 2023 when the SEC filed a lawsuit against Binance, accusing it of the unlawful operation of a securities exchange. Simultaneously, the regulatory body is delving into the potential parallels between Binance’s situation and the November 2022 FTX fallout. CoinGape’s earlier report highlighted expert opinions suggesting that the SEC could unveil a fresh trove of evidence against Binance during its legal proceedings.
Coinbase’s Surge Amidst Binance’s Woes
Remarkably, Binance’s legal turmoil unfolds against the backdrop of its primary competitor, Coinbase, witnessing a surge in its stock price. On November 27, 2023, $COIN stock hit an unprecedented peak at $121, marking the highest point since May 22, 2022.
A Shift in Leadership and Regulatory Commitments
Post-CZ, Richard Teng, the newly appointed CEO, has assumed the reins and committed to bolstering regulatory compliance. This strategic pivot diverges from CZ’s previous leadership stance, with Teng expressing a keen interest in collaborating closely with regulators globally to foster a reputation centered on trust.
As the SEC continues its meticulous investigation, the crypto community awaits the unfolding chapters of Binance’s narrative, with the juxtaposition of legal challenges and competitor dynamics adding an intriguing layer to the crypto landscape.
Source: coingape.com
