Cryptocurrency is a fast-moving, ever-evolving sector in the global financial market. In recent times, a few exchanges such as Binance have received heightened attention from enforcement agencies in the United States who are actively on the lookout for any form of crypto-related crime. This has consequently encouraged other agencies to take necessary actions in the sector for establishing effective control.

Binance and its CEO Changpeng ‘CZ’ Zhao were the subject of a new lawsuit filed in the Southern District of Florida on March 31 with a $1 billion perceived damages. The lawsuit was filed by the Moscowitz Law Firm and Boies Schiller Flexner alleging the crypto exchange and its CEO involved in promoting unregistered securities without prior registration and disclosure. Among others, alleged participants of this unregistered securities promotion are NBA Miami Heat star Jimmy Butler and YouTubers, Graham Stephan and Ben Armstrong (BitBoy Crypto). The law firm claims that the promoters and the exchange responsible for such trades would liable for customer losses, bound to pay a minimum of $1 billion in damages.

Adding to the existing chaos, a Financial Times report surfaced, claiming CZ and other top Binance executives being involved in hiding the exchange’s connections to China. On being asked, Binance replied that the company “does not operate in China nor do we have any technology, including servers or data, based in China”. Additionally, corporate representatives assured all regarding the 8,000 full-time employees who are residing in places such as Europe, America, the Middle East, Africa and Asia-Pacific (and not China).

The two aforementioned incidents promote the idea that enforcement agencies in the USA are now focused on actively checking crypto-related cases in order to guarantee a safe and efficient functioning. Evidently, the interests of investors in the cryptocurrency market will be protected upon consequence of such close monitoring.



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