According to the latest in the world of crypto, SEC has brought down the hammer on Binance. The U.S. Securities and Exchange commission has begun their probe of the U.S. branch of Binance. According to reports, two trading firms have been linked with Binance through the exchange’s CEO, Changpeng Zhao. Investor protection and fair play is key in the crypto trading. Otherwise, it beats its own purpose. If any links are confirmed between Zhao and the two trading firms, there might be instances of insider trading. This could go down very badly with the general public.
The Issue at the Core
Cryptocurrency has claimed its place in the mainstream due to its safety and decentralized nature. However, repeated frauds, attacks on privacy, and now, potential insider trading is dismantling its claims. Crypto is supposed to bring financial stability to the common people. DeFi has been hailed as a phenomenon that could shake the monopoly of Wall Street in the finance world.
One oft the companies involved in the case, Blockfi, has agreed to settle in court. The company will pay a fine of 100 million dollars. The chairman of SEC, Gary Gensler, has been quite vocal about this incident. He has emphasized upon the protection of investors.
As crypto is becoming more and more prevalent and popular, obstacles are only natural. From the NFT tax-fraud cases to insider trading, the misuse of DeFi’s power should be avoided at all costs. It’s a message to all the trading firms out there, and it’s loud and clear.