Sudden! Former Chinese Super Rich Defendant Goes to Court, Nearly 120000 People Burst in 24 Hours

Zhao Changpeng, founder of Coin An. Image source: Social media

On June 5th local time, the world's largest cryptocurrency exchange, Coin An, and its CEO, Zhao Changpeng, were sued in court.

Who is Zhao Changpeng? At one point, the total assets exceeded that of Nongfu Spring Chairman Zhong Danxi, reaching $90 billion.

SEC calls for 'not to invest hard-earned money'

According to court documents submitted by the US Securities and Exchange Commission (SEC), the SEC accuses Coin An of misleading investors, exaggerating trading volume, transferring customer funds, and even mixing billions of dollars of Coin An customer funds into accounts held by entities controlled by Zhao Changpeng, in violation of US law.

The SEC accuses the company of violating investor protection rules, improperly handling customer funds, misleading investors, operating unregistered securities, and other violations.

In a statement, SEC Chairman Gensler stated that through 13 charges, they accused Zhao Changpeng and Coin Security entities of participating in a wide range of fraudulent, conflicting interests, lack of disclosure, and deliberate evasion of laws, allowing Americans to improperly open accounts and trade, and called for "the public to be careful not to invest their hard-earned money in these illegal platforms.

The SEC has filed a lawsuit in a federal court in Washington, D.C.

A total of 118029 people exploded within 24 hours

The SEC's accusations against Coin Security have ignited the crypto market.

After the above news was announced, Bitcoin fell by over $1000 in the short term, below the $26000 level, with a drop of over 7%. As of the close of the 5th, it still fell by nearly 6%, below the $26000 level. Opening on June 6th, it still fell 2% and was temporarily at $25755.99; The Coin An Coin plummeted by over 7%.

Cryptocurrency stocks such as Coinbase also saw a decline. After the first news of the lawsuit, the stock price fell by nearly 12% from Friday's close, and then narrowed to nearly 10%.

According to public data, digital currencies, including Bitcoin, have a 24-hour exposure of $448 million (approximately RMB 3.178 billion), with a total of 118029 people exposed.

According to encrypted data analysis data provider Nansen, within an hour after the announcement of the lawsuit, the withdrawal amount recorded by Coin Security was $231 million more than the deposit amount, which does not include the number of Bitcoin transfers. As of now, Nansen's reserve funds for real currency security are approximately $55 billion.

Zhao Changpeng responded that the SEC's allegations are "baseless"

In response, Zhao Changpeng, CEO of Coin An, subsequently stated that the team will ensure the stability of all systems, including withdrawals and deposits. Coin An stated that the SEC's allegations are "baseless" and that Coin An intends to actively defend itself.

According to Cailian News Agency, 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 lawsuit, we will respond, but we have not yet received any lawsuits. Zhao Changpeng first wrote "4" in this tweet, which is a popular saying in the Coin An community, urging users not to fear or doubt the platform.

Screenshot from Zhao Changpeng's Twitter

Zhao Changpeng once became one of the world's top ten billionaires

According to public information, Coin On is a global cryptocurrency exchange that provides a trading platform for over 100 cryptocurrencies. In April 2018, the 1.4 million transactions per second trading capacity of Coin An attracted 6 million users, making it the world's largest cryptocurrency exchange. The English name of "Binance" is based on the combination of the word binary and finance, providing more than 150 cryptocurrency transactions, including Bitcoin, Ethereum, Litecoin and its BNB token.

Zhao Changpeng, the founder of Coin An, has already become a well-known figure in the "Coin Circle". Zhao Changpeng was born in Lianyungang, Jiangsu and is a Chinese Canadian entrepreneur. At the end of 2021, against the backdrop of the surge in cryptocurrencies such as Bitcoin, Zhao Changpeng once became the richest Chinese with a fortune of 94.1 billion US dollars (approximately 634.8 billion yuan), and also became one of the world's top ten billionaires, becoming famous worldwide. (Source: Securities Times, Cailian News, Public Information; Sorted by: Fang Fengjiao)

Editor: Sun Qi