SEC Targets Solana, Polygon, and Cardano in Binance Lawsuit

SEC Targets Solana, Polygon, and Cardano in Binance Lawsuit

The US Securities and Exchange Commission (SEC) recently filed a lawsuit against cryptocurrency exchange Binance, alleging 13 charges, including commingling customers’ funds and trying to evade U.S. securities laws with "sham controls" for determining who can do business with the firm. However, the SEC also claimed that Solana, Polygon, Cardano, and several other coins are securities in the lawsuit.

The SEC alleges that Binance and its affiliated entities operated as exchanges without registering with the regulatory body, in addition to being broker-dealers and clearing agencies. Certain cryptocurrencies were offered and sold as securities on Binance’s international exchange and Binance.US, according to the filing.

The lawsuit also claims that Binance and BAM Trading engaged in unregistered offers and sales of crypto asset securities, depriving investors of material information, including the risks and trends that affect the enterprise and an investment in these securities.

Following the news, many tokens tumbled, with Solana among those hit hardest, falling more than 6%. Alogrand was down by 9.9%, Polygon fell by 7%, and Polkadot dropped by 6.9% over the past 24 hours.

This development highlights the ongoing challenges faced by decentralized exchanges and other players in the rapidly evolving cryptocurrency market as regulators attempt to keep up with the industry's growth. The case should serve as a warning for all cryptocurrency exchanges and providers to ensure they are fully compliant with regulations and requirements to avoid potential legal action from authorities such as the SEC.

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