Binance have just had been charged on 13 separate counts by the SEC.
The Binance lawsuit shows how CZ and Binance lied to regulators, committed fraud, misappropriated customer money and faked trading data.
Binance is in serious trouble and this is now looking extremely bad.
SEC Press Release: https://www.sec.gov/news/press-release/2023-101
SEC Lawsuit: https://www.sec.gov/files/litigation/complaints/2023/comp-pr2023-101.pdf
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The Binance lawsuit shows how CZ and Binance lied to regulators, committed fraud, misappropriated customer money and faked trading data.
Binance is in serious trouble and this is now looking extremely bad.
SEC Press Release: https://www.sec.gov/news/press-release/2023-101
SEC Lawsuit: https://www.sec.gov/files/litigation/complaints/2023/comp-pr2023-101.pdf
☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE
https://www.patreon.com/sashayanshin
💵 GREAT INVESTING APPS I USE
INTERACTIVE BROKERS (Global - Main investing app I use)
https://bit.ly/ibkr-sasha
GET A FREE SHARE WORTH UP TO £100 WITH TRADING 212 (UK & Europe)
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GET A $10 BONUS WITH LIGHTYEAR (UK & Europe)
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You need to use promo code "Sasha" and the bonus is awarded after your first trade.
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
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Hey guys, it's Sasha Yesterday the SEC filed 13 separate charges against Binance and Champion Xiao the fraudster who has stolen billions of dollars from the crypto Bros who will be all over my comments section, defending the CZ guy and singing his praises. Binance and CZ are accused of operating an unregistered exchange broker and clearing agency, illegally selling U.S customers Securities and Binance.com appropriating customer funds and co-mingling them with Caesar's personal money. There are 136 pages in this lawsuit and I have read them all because they are glorious and I'm going to show you the very best bits because it really is worth it. The short version is Binance is way more dirty than FTX and if caught when Court CZ is going to rotten prison for the rest of his life.
The best bit is that this lawsuit shines a light on how this mysterious guy running a company with no apparent address went from nothing to multi-billionaire in five years. and the crypto Bros defending this piece of suffer from a unique case of Stockholm syndrome because the way that this guy went from nothing to having 10 billion dollars according to Forbes or 27 billion dollars according to Bloomberg is by stealing it from the crypto Bros who for some peculiar reason don't understand this and think that he's some kind of a crypto Messiah But Binance and Mr CZ are not the only degenerate low lies being done over by the SEC because a few minutes ago as I'm recording this video, the SEC has also charged Coinbase. Now, Coinbase got off relatively lightly. They are only getting two major charges for operating an unlicensed exchange and for selling and licensed Securities They will get screwed.
And upon learning that the SEC thinks that Coinbase's entire business is illegal and the SEC wants to shut it the down, the investors in Coinbase stock thought longer hard about it and determined that this is worth an 11 drop in the share price. But the Coinbase lawsuit is boring. The summary is SEC says you guys should be registered with SEC if you want to sell Securities Coinbase says but Bros Crypto is not a security SEC says no bro, it looks like security works like a security is sort of like security has all the characteristics of a security, then it is a security. Coinbases, but command Bro Crypto is like Beyond The Lure and the SEC says no, it's not because I am the law and I say so so you and Binance Binance that case is way more spicy because there it's not just a technical dispute on whether they are operating in illicit exchange and whether they are selling illicit Securities Less Love is not that exciting relatively speaking.
No, there are 176 pages of information on how Binance explicitly went out of their way to lie to the authorities, appropriate customer money, and all of their customers by faking trading data. Because you see, in order to operate an exchange in the United States and sell customers in the US crypto dog, you actually need a license and Binance pretended that they were going to play ball. They're going to go and do what is necessary by setting up Binance. Us. The problem is, they never had any intent of actually playing by the rules starting in or around 2018, determined to escape the registration requirements of the federal Securities laws, defendant and Dejao's control designed and implemented a multi-step plan to surreptitiously evade U.S laws. As Binance's Chief compliance officer admitted, we do not want the Binance.com to be regulated ever. And of course, there is absolutely nothing odd about a finance company wanting to avoid any regulation or any scrutiny from anywhere. This is perfectly normal and is in no way a giant off red flag.
You can see that on the Tweet Announcing this lawsuit, the SEC put a quote saying we are operating as a unlicensed Securities Exchange in the USA bro I Love that they literally quoted this and this is because the Binance Chief Compliance Officer literally said this in 2018. If you're wondering what will happen if the SEC should win this case, you should check out Part B of paragraph 19. the Commission seeks a final judgment, ordering defendants to just Gorge their ill-gotten gains with pre-judgment interest. So the SEC won Binance to hand over all of the money they made from the US customers plus interest.
And between June 2018 and July 2021, Binance earned at least 11.6 billion dollars in Revenue, most of which derive from transaction fees. and it sounds like they earned a heck of a lot more since then. So this one is gonna be expensive, But not only that, they one sees it to go to jail jail I Know what you're thinking? Nobody could possibly have predicted this one coming right. Unless defendants are permanently restrained and enjoined, there is a reasonable likelihood that they will continue to engage in the acts, practices, and courses of business set forth in this complaint.
And in case you're wondering how long this prison sentence is going to be, you should pay particular attention to the word permanently And remember the Sam magnet feed is currently on trial looking to serve over a hundred years for doing the same exact thing. I Will link this full document in the description, but some of the best bits relates to the fact that CZ Binance customers by fake trading data and then gambling with their money with the customers money. just like FTX because CZ owns both Binance.com and Binance Us. but he also owns these two companies called Sigma Chain, Ag and Merit Peak Limited.
Sigma Chain is a trading firm that has exclusive access to Binance and acts as a trading intermediary basically the third party that helps provide liquidity and complete transactions. But the slide problem is that CZ owns the platform and the third party who acts as the counterparty in the transactions. and there are three people in this equation, the customer being the third one. So according to this lawsuit, this Sigma chain company engagement was trading that artificially inflated the trading volume of crypto asset. Securities in a watch trading schema. Trader buys and sells the same asset between or among his or her own accounts. In transactions lacking economic purpose, Wash trading is not arm's length Market activity and is not the result of Market forces of supply and demand. Wash trading gives the artificial appearance of among other things increased trading volume, liquidity, and trading interest for the asset at issue.
It may also artificially inflate the aggregate trading volume of the platform upon which the asset is being traded. The lawsuit says the Binance knowingly set this up, even though it is completely illegal. It means the Binance suddenly began reporting much higher trading volumes than what they were actually processing, higher than anybody else, which attracted so many new users to the platform in such a short space of time. They made the trading data publicly available to encourage people to use the platform by pretending that it was insanely popular.
Exactly the same thing that FTX did. For example, on September 25th, 2019, the day after Binance, the US platform opened for trading was trading between Sigma chain accounts and other accounts owned by Zhao and or associated with Binance. senior employees constituted more than 99 of the initial hour of trading volume in at least one crypto asset. by the end of the day was trading by these accounts amounted to nearly 70 percent of that same crypto assets total volume between January 1st 2022 and June 23 2022 alone.
Sigma Chain accounts engaged in was trading in 48 of 51 newly listed crypto. So assets volume is important to investors in crypto asset. Securities In evaluating prices including anticipated price movement Market Activity including demand and available liquidity and market efficiency as Xiao Recognize the successful crypto asset trading platform depends on its customers believing the trading and reported liquidity are not tainted by fraud. But even worse, this was trading allowed a Binance to artificially pump the price of these tokens because every trading instrument has an order book and if you control a large part of the total trading volume that costs you absolutely nothing to cycle through.
you can easily go and set a whole load of sell loaders above the current market price, then go and buy against your own sell orders, pushing the price upwards and continue doing it as long as you need to. even though there is no actual net movement in the commodity, no actual interest other than the one that you are artificially generating. It also helps when the tokens that you are pumping sit on your own crypto blockchain because this process then becomes completely 100 free because all the fees that you are paying to dupe your customers end up in the Binance bank account anyway. The other company that Cze owns is called Merit Peak and this company is basically the Binance equivalent of Alameda Research: You could not make it up literally the same exact setup. This mysterious company that has nothing to do with Binance, but just happens to be owned and operated by the same guy. For example, through accounts owned and controlled by Xiao and Binance, billions of US dollars of customer funds from both Binance platforms were co-mingled in an account held by Agile controlled entity called Merit Peak Limited, which funds were subsequently transferred to a third party, apparently in connection with the purchase and sale of crypto assets. Merit Peak Limited is a crypto asset trading firm. Incorporated In the British Virgin Islands Of course, why would you not set it up an obscure tax? Haven Far away from any regulations or oversights, because pay paying tax on the money that you've stolen is a rookie fraudster mistake.
Zhao Is Merit Peak's beneficial owner and several Binance employees conducted his operations. It has described itself as a proprietary firm trading with our owners Zhao self-made wealth from the digital asset business. Merit Peak Was an OTC trading service provider on a Binance.com platform and was one of the earliest market makers on the Binance.us platform. So the setup here is literally identical to FTX The wording is pretty much exactly the same, and it would be extremely funny if it wasn't So pathetic and disgusting.
This entire crypto space is filled with these degenerate low life stealing the money of people that they sold the promise of getting rich quick to these belong in prison and the sooner this happens, the better for society. CZ Also owns this company called Bam Trading that is also a commercial partner of Binance and is also being sued. He appointed some round them to pretend to be the CEO of Bomb Trading because you know that looks better. but Bam CEO B Expressed concerns to Zhao about Merit Peaks and Sigma Chains activity on a Binance.us platform as he testified under oath to the extent that these two liquidity providers were significant sources of liquidity meaning that our customers couldn't you know clear orders without the presence of those makers on our platform.
I Thought that was a real problem. It suggested that the company was in fact heavily dependent on CZ not just as a control person, but also as an economic counterparty. and that is problematic. So I thought we needed to look into de-platforming them.
Bam CEO B's concerns were well founded. Merit Peak and Sigma Chain accounts were used in the transfer of tens of billions of US Dollars involving Ban Trading Binance and related entities. For example, by 2021, at least 145 million dollars was transferred from Band Trading to a Sigma Chain account and another 45 million dollars of funds were transferred from Bam Trading's Trust Company B account to the Sigma Chain account from this account. Sigma Chain spent 11 million dollars to purchase a yacht. So yeah, these fraudsters have no shame whatsoever. They their customers steal their money, move it around their various companies registered in random Caribbean countries and then they go and buy multi-million dollar yachts. Given all of this information, it is perhaps not surprising that Mazars fired themselves from being Binance's auditor after everybody else decided not to even try I am guessing Once they saw all of this or at least some of it, they realized that the initial report that they produced was based on fake data, so they probably deleted it. and then they didn't want to share a prison cell with CZ for a hundred years.
So they turned around and walked right the out of the building. Worth Cannot express how much I despise an absolutely lividly hate people preying on the financially vulnerable, but these are even worse. They first find people with financial problems in financial trouble and sell them the dream of everything being okay of making a lot of money fast. They pump the out of fluffy.
you know, whatever the flavor of the week crypto token is. They pump the price artificially high. They do it through their own trading. They do it through.
YouTube YouTubers Dump all of this dog onto their customers, collect all of their fees immediately converting it into real money because you don't want to be stuck with all of this crap, then watch the customers squirm as the value of their investment goes to nothing, Then promise them that they can make it all back on the next fluffy Inu Rinse and repeat over and over and over. These disgusting scumbags deserve whatever is coming for them. This that buys them Yachts has meant that real people suffer. In many cases.
those people can't afford to buy food for their families to pay for their bills. This is the kind of degenerate ass wipe that will take the last dollar from someone in financial trouble and then send them out to bring back more dollars next month and every hard on YouTube and on Twitter and everywhere else who is actively promoting all of this garbage and took the fat paychecks for doing it. Boy do I hope that they eventually get the SEC coming for them too, because all of this was paid. Certainly obvious at the time, there is absolutely no way that anyone with more than one and a half brain cells could have not seen this coming.
So obvious that some people on YouTube did not take the stupid money from crypto exchanges and tokens to promote them to their followers. I Know who could possibly have put two and two together? I Can only hope that Karma eventually comes and explains to these maggots what life actually looks like and how it actually works Because while their followers all got completely in all of this, they go and make videos about buying fancy mansions in Las Vegas with the proceeds.
Sasha, you were right again…
Binance’s net worth is about $4.2 billion, so being forced to pay the United States over $4 billion sounds very dangerous and painful. Also criminal charges would be brought against CZ and a monitoring surveillance system would be set up to oversee Binance which fundamentally is a death-blow to the idea of decentralized currency, thus all of these actions would most definitely severely crash the entire bitcoin and alt cryptocurrency market. 😬
So, today 3rd Nov 2023, we know FTC boss Bankman-Fried is toast. Convicted, life term. 4.5 hours jury deliberation. No real defence, those attending said. Main point to emerge as an aside : Binance have the same potentially bogus insurance against loss as Bankman-Freid had. Journos present raised this afterward, having mixed with some financial onlookers. If Binance pops its criminal cherry, how many others? Thanks for the vid. Take care all. The front end of a lot of crypto, the fact it has nobody backing it to the death like fiat currency has, was always suggesting all it is, is the worst kind of token-selling. Once you translate your fiat ‘real money’ into a token or bitcoin as they are known, the loss is only a matter of time. Bankman got $8Bn out of it before conviction. Out there, somewhere, people have lost $8Bn. Ordinary people who worked for a living, bought in. It was obviously going to happen, I guess everyone hoped they’d win and others be the losers?
Love it. CZ was the one who called out SBF as being full of sh**t and started the collapse of FTX. But CZ is also full of sh**t, since CZ and SBF hang out in same toilet, and both came from the same bu**h**le. SBF will negotiate to be a snitch to CZ for his case.
How could this impact Binance International? Besides CZ going to jail and being replaced…
CZ is very sleaZy
Thank you. 😊
For Binance, things are fragile in Europe, they don't have applications that work, problem!!!
Can't wait to see him behind bars
It’s shit can’t use it it’s hard to use
Crypto is the future. You are just FUD
The man sounds really hurt, I wonder which crypto he lost money on? Probably a victim of Bitconnect (I know the feeling). Yeah, eff them all mate, the bast*rds💯
Stunning. 😘👌 Keep up the great work dude
Oh so all crypto is a scam, wonderful.
So what if its unlicensed? Its all just semantics at this point it makes no difference to anyone unless it genuinely is a scam. Its like blaming people for wanting to buy their meat from a specific butcher. Let them do as they please as long as baseline morality is established!
JpMorgan did wash trading in 2011, and guess what? They were fined for $30k
You'd be surprised how many rich Chinese deposited on Binance. Don't let poverty limit your imagination. If you're really bearish on Binance, I challenge you to short BNB.
The crypto market is facing a key moment right now definitely in a short period of time it's going to incure a breakout to new record high.This is a critical moment where every investor needs to be aware of buying more with the current market trends, investing in bitcoin will be a very awesome move to make as its going to sky rock soon.
I'm celebrating a $30k stock portfolio today. I started this journey with 4k. have invested on time and also with the right team now I have time for my family and the life ahead of me
Binance keep scamming people.. Binance exchange is the biggest scam on the planet..
Some claims are yet to BE proven
Thanks Sasha TOP CONTENT .
Thanks Sasha Nice One DUDE.
People with financial difficulties
Ought to
Not speculate with fluffy inus
Not blindly trust YT influencers
Do their own research.
Same speculators like cz have flourished in the past in wallstreet.
Where u was when FTX collapsed?
No one lost a dollar in binance. What about ftx?
Another C-virus got exposed.