According to Bloomberg reports, the platform has recently faced significant regulatory challenges that have created additional difficulties for Changpeng Zhao, the current CEO.
The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the company’s platform in the United States, and Changpeng Zhao (CZ), in the District of Columbia Court on June 5.
In this sense, on June 5, Binance tweeted a thread from which the following post stands out:
“4/ Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.”
The American regulatory body has accused the exchange of multiple violations. These include making unregistered offers and sales of BNB and BUSB tokens. As well as products like Simple Earn and BNB Vault, along with their staking program.
The SEC also alleges in the lawsuit that Binance has failed to properly register its Binance.com platform as an exchange or brokerage. Furthermore, it is claimed that Binance and BAM Trading have failed to register Binance.US as an exchange, broker, and clearing agency, and CZ has been sued as a “control person”.
Binance Might Be Considering Replacing Its CEO
Furthermore, Binance is actively evaluating the possibility of replacing its chief executive officer (CEO). According to Bloomberg reports, the platform has recently faced significant regulatory challenges that have created additional difficulties for Changpeng Zhao, the current CEO.
Sources close to him reveal that Richard Tang is the leading candidate to take over should Zhao step down. Tang, a 52-year-old Singaporean, has previously worked at the Central Bank of Singapore, as well as at the Singapore Stock Exchange, before joining Binance in 2021.
Tang is considered to be the ideal candidate to lead the company, amid increasing regulatory pressure facing Binance, despite the fact that it remains the leading cryptocurrency exchange.
BNB Price Records Losses
After the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, the price of Binance Coin (BNB) experienced a drastic drop.
The first Monday of June was especially negative for BNB after the SEC’s lawsuit was made public. According to internal data, at the time of writing, the BNB price has fallen by around -8.98%, as reported by Criptotendencia’s internal tool, Crypto-Online.
The fact that the SEC sued Binance at a time of weakness for the industry raises great concerns for the community. There are few platforms that could take the place of this exchange, and the worst thing is that those that follow it are also in trouble with the SEC.
The impact of regulatory demand has generated a negative reaction in the market, which is reflected in the significant decrease in the value of BNB. Investors and traders are closely monitoring this situation, as well as its implications for the future of Binance and its native cryptocurrency.
By Audy Castaneda
