In the review of 2022, Binance hailed its progress incomplying with regulations across the world. That dream is now looking more distant after the SEC’s action. “The idea that a five-year-old start-up could mature andoperate at the same level as a financial institution that hasbeen around for 200 years was once impossible to fathom,” thebillionaire wrote in January in a review of the previous year.

This year, Zhao felt a major goal wasalmost within his grasp: a seat at the top table of finance. The 46-year-old CEO did not waver in his belief as he builtup his crypto exchange. “We want to take over theentire market!” he told staff in a company chat group that year. exchange, the SEC’s actions are limited in reach.” Binance said any allegations that user assets have been at risk “are simply wrong.”Įver since he launched Binance in Shanghai back in 2017, Zhao dreamt big. In response to the SEC’s allegations, Binance said: “We intend to defend our platform vigorously,” adding that “because Binance is not a U.S. regulators to rein in a company that they allege has grown to a colossal size by systematically evading U.S.

Zhao’s towering ambitions are now coming up against the concerted efforts of U.S. Commodity Futures Trading Commission, filed in March, and his exchange has been under investigation by the Justice Department too. The billionaire tycoon already faces charges from the U.S. The complaint further threatens Zhao’s vast business empire, which for years has dominated the crypto industry. customers from its unregulated platform to commingling and diverting billions of dollars in customer funds “as they please.” These ranged from allegedly manipulating Binance’s trading volumes and failing to restrict U.S. The SEC accused Binance founder Changpeng Zhao of operating a “web of deception,” charging him and his exchange with 13 offences.

Securities and Exchange Commission took aim at the most powerful man in crypto.

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