Stark cites evidence that led to the U.S. Department of Justice (DOJ) filing a sealed indictment against Binance for fraud, obstruction of justice, and potential money laundering.

Stark emphasizes that the CFTC and SEC allegations are comparable to indictments alleging unlawful conduct such as fraud, deceit, obstruction of justice, and even money laundering.

Stark argues that the U.S. Department of Justice (DOJ) would have authority over allegations of money laundering, whereas the CFTC and SEC are solely concerned with civil enforcement.

Stark speculates that the Department of Justice (DOJ), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and other informants or whistleblowers will shortly file criminal charges against Binance.

Binance's difficulties

The U.S. Commodity Futures Trading Commission (CFTC) recently filed a 76-page lawsuit against Binance, alleging violations of several CFTC rules and regulations by Binance CEO Changpeng Zhao and three corporations administering the Binance platform.

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The lawsuit also alleges that the former chief compliance officer of Binance, Samuel Lim, conspired to aid and abet these offenses. According to the CFTC's findings, Lim assisted certain clients in committing unlawful acts and advised others on how to circumvent compliance safeguards.

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The U.S. Securities and Exchange Commission (SEC) has also initiated an emergency asset withholding action against Binance.

The 136-page lawsuit alleges that Binance Enterprises and Changpeng Zhao severely endangered investor assets by commingling customer cash with company funds and then clandestinely transferring the funds to Zhao-controlled firms.

The SEC asserts that Sigma Chain, a company controlled by Zhao, engaged in market manipulation and that there were substantial currency transfers between firms controlled by Zhao.

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With ongoing investigations and the possibility that the US Department of Justice will unseal criminal charges, Binance's situation is far from stable. The outcome of these lawsuits will have far-reaching ramifications for Binance and the entire cryptocurrency industry.