“Zhao and Binance created BAM Management and BAM Trading in the United States and claimed publicly that these entities independently controlled the operation of the Binance.US platform.” The regulator filed 13 charges against the defendants.īinance and BAM Trading were under Zhao’s leadership and control and operated without registering with the SEC, the agency stated. CNN Sans ™ & © 2016 Cable News Network.The SEC is accusing Binance, the world’s largest crypto exchange, its CEO Changpeng Zhao and BAM Trading and BAM Management, of lying to regulators about its operations, according to a federal suit filed Monday. Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account
CNN Business’ Matt Egan contributed to this article. The outlet reported that the regulators are investigating whether FTX properly handled customer funds, citing people familiar with the probe.Ī spokesperson for the SEC said the commission does not comment on the existence or nonexistence of a possible investigation.
Still, investors worried about the deal coming together and promptly sold off digital assets of all stripes.Īccording to Bloomberg, the meltdown of FTX is already under investigation by the Securities and Exchange Commission and the Commodity Futures Trading Commision. In essence, that forced a $580 million capital call that Bankman-Fried didn’t have the liquidity to meet.ĭespite bad blood between Bankman-Fried and Zhao, the rivals appeared to come together on a deal that stunned the crypto world on Tuesday, when Binance said it would acquire FTX pending due diligence. The FTX saga escalated over the weekend, when Binance’s CEO, Changpeng Zhao, said his company would liquidate its holdings in FTX as speculation swirled about the company’s financial health. Representatives for Binance and FTX didn’t immediately respond to requests for comment Wednesday.Įven for assets known for their volatility, it’s been a brutal week. Ether, the second most popular token, fell about 13% to $1,137 - also off 75% from its record high. The crypto currency has fallen more than 75% from its all-time high near $69,000 a year ago. Virtually all digital assets sank Wednesday over the turmoil at FTX.īitcoin sank below $16,000, its lowest level in two years, after Binance confirmed it would not buy FTX. Without a bailout, FTX is poised to collapse, along with the rest of Bankman-Fried’s vast crypto empire.Īccording to the Wall Street Journal, Bankman-Fried told investors Wednesday that he needs emergency funding to cover a shortfall of up to $8 billion due to withdrawal requests received in recent days. He has appeared in ads alongside celebrities like Gisele Bündchen, part of a campaign to bring crypto into the mainstream.
BINANCE CEO SOLD APARTMENT SERIES
Morgan as he engineered a series of bailouts to struggling crypto firms earlier this year. Bankman-Fried, known to insiders as SBF, regularly drew comparisons to investing icons like Warren Buffett and J.P. It also marks a stunning fall for Sam Bankman-Fried, the 30-year-old rock star of the industry who founded FTX in 2019. The reversal is the latest twist in a dramatic and fast-moving saga involving the crypto world’s most powerful players. In an abrupt reversal, cryptocurrency exchange Binance pulled out of a deal to acquire its embattled rival FTX, saying the company’s problems were “beyond our control or ability to help.”īinance, the world’s largest crypto exchange, said it reviewed FTX’s finances as part of the due diligence process, and it cited reports of “mishandled customer funds and alleged US agency investigations” in announcing the deal was off.
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