US SEC sues Yuan An and Zhao Changpeng for abusing customer funds and fraudulent transactions

Cailian News Agency, June 6th (Editor Niu Zhanlin)On Monday, US Eastern Time, according to court documents submitted by the US Securities and Exchange Commission (SEC), the world's largest cryptocurrency exchange, Yenan and its CEO Zhao Changpeng were accused of violating the regulations of the US security.

After the news was released, Bitcoin fell by over $1000 in the short term, breaking the $26000 mark, and the decline expanded to 5.2%. The Coin On Coin plummeted by over 7%.

The SEC accused Coin An of engaging in illegal activities such as operating unregistered exchanges, selling unregistered securities, and abusing customer funds. SEC Chairman Gensler stated in a statement that through 13 charges, they accused Zhao Changpeng and the Coin Security entity of involvement in a wide range of fraudulent transactions, conflicts of interest, lack of disclosure, and deliberate evasion of the law network. The SEC has filed a lawsuit in a federal court in Washington, D.C.

(indictment, source: SEC)

The SEC pointed out that Coin An misled investors in trading control, exaggerated trading volume, and transferred customer funds. Even mixing billions of dollars of Coin An client funds into accounts held by entities controlled by Zhao Changpeng violates US law.

The indictment mentions that since its establishment, under the guidance and control of its founder Zhao Changpeng, the Coin On Exchange has worked "first publicly, then secretly" to attract American customers. Then, they use the market makers they control to push up the price of encrypted assets and profit from customers.

For many years, US regulatory agencies have been paying attention to currency security, and the SEC and the Department of Justice issued subpoenas to their US branch at the end of 2020. After the collapse of numerous cryptocurrency companies, including FTX, officials have increased their enforcement efforts in the past year.

This lawsuit increases the challenges faced by Coin An in the United States. The Commodity Futures Trading Commission (CFTC) sued Zhao Changpeng in March of this year, accusing the company of intentionally providing unregistered cryptocurrency derivatives in the United States in violation of federal law.

Subsequently, Zhao Changpeng stated on Twitter that our team is always ready to ensure the stability of our system, including withdrawals and deposits. Once we receive a complaint, we will respond, but we have not yet received any complaints. The media received relevant news earlier than we did.

Coin Security responded that all user assets on Coin Security and its affiliated platforms, including Coin Security America, are currently secure, and any allegation that user assets are at risk on Coin Security America platform is completely incorrect.

Coin An United States stated that the SEC's allegations are "baseless" and we intend to actively defend ourselves. For the past two and a half years, we have been sincerely cooperating with the SEC in various ways and have had extensive goodwill discussions with the SEC to reach an agreement and resolve their investigation.

Ed Moya, senior market analyst at Oanda, said, "I believe there is a significant risk in this matter and it could have a serious impact on Coin An