​Former SEC official warns of possible US Department of Justice lawsuit against Binance

What’s new? There are a number of indications that the US Department of Justice will file or has already filed under seal criminal charges against the Binance exchange, former Securities and Exchange Commission (SEC) attorney John Reed Stark said. According to him, the SEC and Commodity Futures Trading Commission (CFTC) lawsuits are more like criminal ones, as they contain allegations of fraud, deception, obstruction of justice, and money laundering.

Why US DOJ Will File, Or Has Already Filed Under Seal, a Binance-Related Criminal IndictmentHaving worked in the US SEC Enforcement Division for almost 20 years and managed many US SEC-DOJ joint prosecutions, IMHO, there exist a litany of indicators that US DOJ will file, or… pic.twitter.com/VSbDKUh5EF — John Reed Stark (@JohnReedStark) June 11, 2023

What else did the expert say? Stark noted that neither the CFTC nor the SEC is focusing closely on money laundering in their lawsuits. This, he said, indicates that the US Justice Department will take up the issue. The former SEC official believes that the latter is working with the SEC, the CFTC, as well as numerous whistleblowers, and the next step, will be to file or disclose criminal charges related to Binance.

What is known about the lawsuits against Binance? On June 5, the SEC filed a lawsuit against Binance for violations of US securities laws. The regulator also filed a motion to freeze crypto assets owned by Binance.US and exchange owner Changpeng Zhao.

Meanwhile, the CFTC’s lawsuit alleges that some employees of the exchange knew about its use for criminal activity. The regulator also accused the exchange and Zhao of allowing US customers on the global platform to maximize their own profits.

In addition, the SEC reported about $70 billion in transfers by Binance and related entities through accounts at bankrupt banks Silvergate and Signature. Signature was shut down by regulators in March after deposit outflows. Silvergate announced its voluntary closure the same month.

For more details on the aftermath of the SEC’s attack on Binance, Coinbase, and altcoins read GetBlock Magazine’s special feature.