'From Binance US’s perspective, the less disclosure, the better.'Ī Binance spokesperson said the exchange is registered with the Financial Crimes Enforcement Network - a unit of the US treasury department - and complies with all applicable regulations. 'Binance US profits from every trade, and therefore has a stark incentive to sell crypto assets irrespective of their compliance with the securities laws,' Lockhart wrote in his lawsuit, filed in San Francisco federal court. Lockhart said Binance’s failure to register with the US government as a securities exchange limits disclosure about assets traded on the platform, harming investors.

In the lawsuit against Binance and Shroder, Utah resident Jeffrey Lockhart said Binance falsely advertised TerraUSD as 'safe' and backed by fiat currency, when in fact it was an unregistered security. But TerraUSD’s value plunged last month, breaking its 1:1 dollar peg and contributing to a tumble in other crypto assets such as bitcoin. Stablecoins are digital tokens pegged to the value of traditional assets, such as the US dollar, and are popular as safe havens in times of turmoil in crypto markets. And in the U.S., the SEC is probing the relationship between Binance.US and two trading firms with ties to Zhao, per the WSJ.New York - Binance US and CEO Brian Shroder were sued on Monday by an investor who alleges the cryptocurrency exchange falsely marketed TerraUSD as a safe asset ahead of the stablecoin’s collapse in value in May.The exchange has also run afoul of regulators in Japan, Canada, and Thailand. Financial Conduct Authority banned Binance from carrying out regulated activities there. Binance has historically not had a global headquarters, which has been a point of contention with global regulators seeking jurisdiction of the exchange - but that could soon change.The intrigue: Binance and Binance.US have both had run-ins with regulators in the states and abroad. It also recently brought on chief risk officer Sidney Majalya, general counsel Norman Reed, chief compliance officer Tammy Weinrib, and chief people officer Carol Mackinlay.Two states - Connecticut and Louisiana - were added just this year.Īt the same time, Binance.US has been ramping up its local executive ranks, hiring former Ant Group and Uber China exec Brian Schroder as its CEO last October.and is missing in key markets like New York, Texas, Vermont, Idaho, and Hawaii. That’s partly due to being just three years old and partly due to local availability, as Binance.US is accessible in just 45 states in the U.S.FTX raised funds to make acquisitions and other investments - and it did just that yesterday by putting money into stock exchange IEX Group.Ĭontext: Binance - founded by CZ Zhao, now one of the wealthiest people in the world - is the world’s largest crypto exchange by volume, but its U.S.In January, global crypto exchange FTX raised $400 million at a $32 billion valuation, and FTX US raised another $400 million at an $8 billion valuation.Last week, crypto trading and wallet startup raised an undisclosed amount at a $14 billion valuation.Of note: As these crypto assets go mainstream, the exchanges they are traded on are attracting capital and achieving massive valuations. and worldwide, as investors seek high growth, alternative assets at a time when macro-economic clouds weigh on the global economy. Why it matters: The fundraise comes as money is pouring into crypto exchanges in the U.S. Investors include RRE Ventures, Foundation Capital, Original Capital, VanEck, Circle Ventures, Gaingels, and Gold House.Cryptocurrency exchange Binance.US raised $200 million in a seed round at a pre-money valuation of $4.5 billion.

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