The US Securities and Exchange Commission (SEC) is reportedly still investigating Binance CEO Changpeng Zhao and the company’s US branch, despite both parties already pleading guilty to other charges levied by the Department of Justice (DOJ).
According to a new report from The Wall Street Journal, both Binance and Zhao will be investigated for evidence that they still have backdoor access to control Binance.US’ crypto assets.
The SEC originally sued Binance in June, claiming the crypto exchange was offering illegal securities. Earlier this month, Zhao pleaded guilty to separate charges of failing to comply with adequate anti-money laundering protocols, prompting him to resign from his position as CEO of the company.
Additionally, Binance agreed to pay a $4.3 billion fine to the DOJ.
However, the DOJ’s complaints do not include allegations that Binance could control its customers’ funds.
During a recent meeting, Binance.US lawyers asked US judge Zia Faruqui to consider halting the investigation. Faruqui responded by saying he believes Zhao’s guilty pleas could be enough to stop the investigation.
As Faruqui explained to the SEC’s lawyers, according to The Journal:
“At some point I have to take a leap of faith and say: enough is enough.”
Binance attorney Matthew Laroche further says that the company is suffering financially from the SEC lawsuit, according to the report. He says the average monthly value of Binance.US assets has fallen by almost 90%, and the company has lost almost half of its monthly users since the SEC filed its case.
As Laroche says:
“The SEC has no evidence that assets have been misused in any way.”
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