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- SEC claims Binance funnelled $12bn in customer funds through affiliates.
- Coinbase CEO Brian Armstrong won’t delist tokens targeted by SEC.
- This, and a lot more in today’s Snapshot.
SEC claims Binance funnelled $12bn in customer funds through affiliates
The US Securities and Exchange Commission said Tuesday that exchanges Binance and its US sister firm Binance.US funnelled $12 billion in customer funds to external entities.
In a Tuesday filing geared to freeze customer funds, the SEC claimed that Binance moved the billions through Binance CEO Changpeng Zhao’s Merit Peak trading firm.
The SEC leaned on documents from various entities including recently collapsed Silvergate and Signature Banks as evidence, with alleged links to the stablecoin issuer that issued Binance’s proprietary stablecoin, BUSD.
I was told this is just part of the SEC compliant process. Nothing new.
— CZ 🔶 Binance (@cz_binance) June 7, 2023
Also told I won't have to appear in person. No need to FUD. 🙏 pic.twitter.com/NYUlBCIirG
Coinbase CEO Brian Armstrong won’t delist tokens targeted by SEC
In an emerging battle with the US Securities Exchange Commission, Coimbase CEO Brian Armstrong told outlet Axios that he will not delist tokens named as securities as part of the US agency’s lawsuit against his firm.
The SEC named Solana, Cardano, Polygon, and a host of other crypto tokens in its latest lawsuit. Armstrong said Coinbase would continue to offer and transact the tokens on a “business as usual” basis.
So now key members of Congress *and* US Treasury secretary are acknowledging US needs new rules and guidelines for crypto same week that the SEC under GG moves to assert jurisdictional authority through enforcement actions. https://t.co/2CAYtetZrE
— Rachael Horwitz (@RachaelRad) June 7, 2023
US judge throws out PoolTogether lawsuit, sets DeFi regulation precedent
A US district court judge shot down a lawsuit against Ethereum protocol PoolTogether on Tuesday, citing a lack of evidence by the plaintiff who alleged the protocol operated as an illegal lottery.
While the district court acknowledged plaintiff Joseph Kent’s concerns, it deemed the lawsuit inappropriate for a federal resolution. PoolTogether uses liquidity pools to combine customer funds, and allocate the funds to a randomly chosen recipient.
The lawsuit’s outcome sets precedent for cases of litigation against decentralised finance, with the judge highlighting the onus of the plaintiff for participating in the protocol “of his own accord.”
NOW READ: Arbitrum just came to a sudden halt — it ran out of money for gas
UK regulator clamps down on crypto marketing tactics with new rules
The UK’s Financial Conduct Authority will restrict “refer a friend” bonuses among other promotional tactics by crypto firms, as part of a push to reign in crypto marketing practices it deems reckless.
The FCA’s rules include a 24-hour “cooling off” period which seeks to ensure crypto firms fully disclose risks to investors upon request.
The cooling-off period is already in effect for other assets under the FCA’s purview.
NOW READ: Montenegro leaders turn on crypto after Vitalik’s Zuzalu fest. The reason: Do Kwon
More web3 news from around the web…
DeFi tokens are down over 80% against ETH since all-time highs — The Defiant
Binance’s CZ summoned at Malta address, says he won’t need to appear in person — The Block
Cathie Wood’s ARK bought $22M worth of Coinbase shares after the price tanked — Decrypt