The End of Crypto As We Know It
IntelligencerJun 05, 2023
The US Securities and Exchange Commission (SEC) has sued the world's largest cryptocurrency exchange, Binance, as well as its founder and CEO Changpeng Zhao, accusing them of profiting billions while "placing investors’ assets at significant risk."
The regulator filed 13 charges against Binance in the US District Court for Washington, DC — including misleading investors about its ability to detect market manipulation, misusing customer funds, and sending some of that money to a company controlled by Zhao.
For more than a decade Binance has made billions of dollars through its deceitful and fraudulent business practices. Though no criminal charges were made, the SEC is finally — both publicly and officially — calling out the world's crypto leaders for secretly spending customers' money and sliding funds into shell companies to enrich themselves. This will hopefully bring an end to the wild west era of cryptocurrency, one that has led to vulnerable customers' losing billions in lost investments.
While existing laws should be enforced, the government should not go any further in treating cryptocurrency like traditional currency or financial institutions. The SEC must allow a more open environment to spur innovation. This also doesn't mean traditional institutions can't participate in the crypto world — they will be the ones who invest in these technologies to make financing cheaper and more efficient. Cryptocurrency is still a viable space.