Topic: Binance's Growing Legal Troubles: Are They Facing a Crisis? (Read 350 times)

I saw this news in my feed and it immediately made me to change my stance from Binance legal troubles are "not an issue", to "binance is in deep trouble".
No other exchanges have faced this in europe, crypto.com visa card keeps working just fine. So this is definitely personal attack against Binance alone.

I am not sure why you posted not-english link to english section, as there are lots of english links available.

I made a thread about it earlier:
https://bitcointalksearch.org/topic/m.63028697

I think legal challenges often serve as a litmus test for any organization, and Binance is currently under the magnifying glass. The SEC has come down hard on Binance, bringing forth 13 charges related to securities violations. These charges revolve around allegations of wash trading and the illegal sale of BNB and BUSD tokens as unregistered securities.

Even before the SEC lawsuit, two key figures at Binance, CZ  and former Chief Compliance Officer Samuel Lin, were charged by the CFTC for their questionable actions. The CFTC has not only issued charges but seeks to impose a payment trading and registration ban on the exchange, which would effectively mean Binance could no longer do business in the U.S. These legal battles are no trifles, and the implications are profound.

The situation at Binance reminds us of a familiar tale: FTX. Is Binance headed down the same path? One thing that can't be ignored is the timing of key personnel departures from Binance. What's even more intriguing is the timing of key personnel departures from Binance. Several high-profile executives, including  its Chief Strategy Officer, President of Compliance, and General Counsel left Binance in what appeared to be a coordinated move. While the official statement cites personal reasons for their departures, rumors suggest that these executives were not satisfied with CZ's handling of the DOJ  investigation. The timing is indeed peculiar and bears a striking resemblance to the situation that unfolded before FTX's collapse when Sam Trabucco left Almeda Research.

In the crypto world, things move fast. I think Binance is facing its biggest threat and I for one am terrified of what's to come, but they can never go down like ftx. Can Binance regain trust?

...."The Binance cryptocurrency exchange notified customers that it will cease issuing and servicing the Binance VISA debit card from December 2023. The reason for this decision was the closure of UAB Finansinės paslaugos Contis, the Lithuanian subsidiary of the British electronic payment operator Contis Financial Services. From December 20, UAB Finansinės paslaugos Contis will no longer be able to support the Binance Card VISA debit card program. "The Binance VISA Card will no longer be supported as of December 20, 2023. The restrictions will affect no more than 1% of our users. Exchange accounts of Binance VISA Debit Card holders will continue to function in normal mode,” said a representative of the exchange...."

https://bits.media/binance-prekrashchaet-podderzhku-debetovoy-karty-visa/

Further, they write that they recommend switching to the “safe cryptocurrency payment technology Binance Pay.”, but it seems to me that the issue is not about security, but about some legislative nuances that may follow in relation to Binance, and this is a “nice move” proactively so that then the picture didn’t look negative.

I think legal challenges often serve as a litmus test for any organization, and Binance is currently under the magnifying glass. The SEC has come down hard on Binance, bringing forth 13 charges related to securities violations. These charges revolve around allegations of wash trading and the illegal sale of BNB and BUSD tokens as unregistered securities.

Even before the SEC lawsuit, two key figures at Binance, CZ  and former Chief Compliance Officer Samuel Lin, were charged by the CFTC for their questionable actions. The CFTC has not only issued charges but seeks to impose a payment trading and registration ban on the exchange, which would effectively mean Binance could no longer do business in the U.S. These legal battles are no trifles, and the implications are profound.

The situation at Binance reminds us of a familiar tale: FTX. Is Binance headed down the same path? One thing that can't be ignored is the timing of key personnel departures from Binance. What's even more intriguing is the timing of key personnel departures from Binance. Several high-profile executives, including  its Chief Strategy Officer, President of Compliance, and General Counsel left Binance in what appeared to be a coordinated move. While the official statement cites personal reasons for their departures, rumors suggest that these executives were not satisfied with CZ's handling of the DOJ  investigation. The timing is indeed peculiar and bears a striking resemblance to the situation that unfolded before FTX's collapse when Sam Trabucco left Almeda Research.

In the crypto world, things move fast. I think Binance is facing its biggest threat and I for one am terrified of what's to come, but they can never go down like ftx. Can Binance regain trust?

Lawsuits are not uncommon when it comes to settling disputes in the financial area, including crypto business area. I don't think that the SEC suing Binance automatically means that Binance committed any crimes, or that Binance will go down the FTX road. With FTX, there was a clear problem of people losing a lot of money and circumstantial evidence that it may not have been a legitimate bankruptcy. But Binance seems to be doing well in that regard, so even if Binance loses the case, I think they'll just end up paying a lot of money, but they'll stay in business and remain a major exchange.
That being said, I totally agree with others in the thread that remind everyone that it's best not to keep BTC on centralized platforms.

I think legal challenges often serve as a litmus test for any organization, and Binance is currently under the magnifying glass. The SEC has come down hard on Binance, bringing forth 13 charges related to securities violations. These charges revolve around allegations of wash trading and the illegal sale of BNB and BUSD tokens as unregistered securities.

Binance has a US website and struggles to comply with regulatory restrictions and responds to all government requests, so I don't think they will leave the US market easily. .US seems safer and has less violations or manipulation than .com because the eyes there are watching most suspicious movements.
binance.com controls a lot of things, so their collapse will not be simple or quick, and so far there is no real competition from the rest of the platforms, so at least they will exist without problems for the coming years and may survive the coming winter.

Well the sec lost against ripple. based on that case I could agree with you that bnb is not a security.

but binance may need to go to court to win out.

While concerning, I don't think Binance is on a hot bed right now, especially when you consider the fact that BNB isn't even a security. SEC is pretty much throwing whatever they can to undermine the cryptocurrency scene in the US in favor of their CBDC, which is arguably inferior and less enticing than the superior cryptocurrency system that we have built for over a decade. Binance is going to weather the storm and gain traction once again the US. and if it couldn't, it's not going to be much of a problem, especially now that the US economy is on the shitbox so they can't really provide as much financial upturn for Binance. China is the name of the game now, as well as other neighboring countries, should we see changes in the outlook of China towards crypto, we can pretty much disregard this whole SEC conundrum altogether.

I think legal challenges often serve as a litmus test for any organization, and Binance is currently under the magnifying glass. The SEC has come down hard on Binance, bringing forth 13 charges related to securities violations. These charges revolve around allegations of wash trading and the illegal sale of BNB and BUSD tokens as unregistered securities.

Even before the SEC lawsuit, two key figures at Binance, CZ  and former Chief Compliance Officer Samuel Lin, were charged by the CFTC for their questionable actions. The CFTC has not only issued charges but seeks to impose a payment trading and registration ban on the exchange, which would effectively mean Binance could no longer do business in the U.S. These legal battles are no trifles, and the implications are profound.

The situation at Binance reminds us of a familiar tale: FTX. Is Binance headed down the same path? One thing that can't be ignored is the timing of key personnel departures from Binance. What's even more intriguing is the timing of key personnel departures from Binance. Several high-profile executives, including  its Chief Strategy Officer, President of Compliance, and General Counsel left Binance in what appeared to be a coordinated move. While the official statement cites personal reasons for their departures, rumors suggest that these executives were not satisfied with CZ's handling of the DOJ  investigation. The timing is indeed peculiar and bears a striking resemblance to the situation that unfolded before FTX's collapse when Sam Trabucco left Almeda Research.

In the crypto world, things move fast. I think Binance is facing its biggest threat and I for one am terrified of what's to come, but they can never go down like ftx. Can Binance regain trust?

I for one am terrified of what's to come, but they can never go down like ftx. Can Binance regain trust?

Even before the SEC lawsuit, two key figures at Binance, CZ  and former Chief Compliance Officer Samuel Lin, were charged by the CFTC for their questionable actions. The CFTC has not only issued charges but seeks to impose a payment trading and registration ban on the exchange, which would effectively mean Binance could no longer do business in the U.S. These legal battles are no trifles, and the implications are profound.

I don't see their legal troubles an an issue. People seem to have already forgotten those as things in crypto space happen such a fast pace.
And they have so much money to fight and this in the court, that they either win, or i will be old man until this is over.
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I am not a regular Binance user, because I don't like overwhelming UI, but I doubt their non-US regular customer will move on from Binance even after they got banned in the US. And I suppose Binance will still run without U.S users.