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The Allegations
The U.S. Securities and Exchange Commission (SEC) is investigating Binance, the world’s largest cryptocurrency exchange, and its founder, Changpeng Zhao.

The Charges
The SEC has filed 13 charges against Binance and CZ. The charges include operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities.

The Guilty Plea
CZ has pleaded guilty to violating anti-money laundering requirements. As part of the settlement, he has agreed to step down as CEO and pay a fine of $200 million. Binance, as a company, also pleaded guilty and agreed to pay a $4.3 billion fine.

The Aftermath
The charges against Binance and CZ mark a significant moment in the regulation of the cryptocurrency industry. The case against Binance and CZ is reminiscent of the charges brought against FTX and its founder, Sam Bankman-Fried. The SEC appears to be cracking down on cryptocurrency exchanges that it believes are bypassing regulation²

Insiders View
The SEC’s pursuit of Binance and CZ underscores the regulatory challenges facing the cryptocurrency industry. As the industry continues to grow and evolve, it is likely that we will see further regulatory scrutiny.

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