Timeline review: All SEC Coins and CZ's "Thirteen Deadly Sins", Gensler

The year 2023 is a eventful year for Yen An. Since February, the Financial Services Administration, the Securities and Exchange Commission, the Futures Trading Commission and the Ministry of Justice have taken turns to launch a series of investigations and lawsuits against Yen An, including asking Yen An to stop issuing Stablecoin BUSD supported by US dollars

The year 2023 is a eventful year for Yen An. Since February, the Financial Services Administration, the Securities and Exchange Commission, the Futures Trading Commission and the Ministry of Justice have taken turns to launch a series of investigations and lawsuits against Yen An, including asking Yen An to stop issuing Stablecoin BUSD supported by US dollars. Changpeng Zhao, the founder of Yuananhe, faced a number of allegations, including violation of trading and derivatives rules, violation of the securities law, and assistance to Russians in evading US sanctions and transferring funds.

This week, the U.S. Securities and Exchange Commission (SEC) threw a "heavy hammer" on Coinbase and Coinbase in two days. Let's take a look at the detailed timeline of the relationship between Coin Security vs. SEC and this century war:

Returning to the end of May, on the eve of the Great War, Coin An made an important personnel adjustment to cope with the difficulties encountered worldwide.

Bloomberg reported that Coin An has appointed Richard Teng to be responsible for all regional markets outside the United States.

Who is Richard Teng?

According to public information, Richard Teng, 52 years old, a Singaporean, had worked for the Monetary Authority of Singapore for 13 years before joining the company. Since 2007, he has served as the Chief Supervisory Officer of the Singapore Stock Exchange (SGX) for 8 years, responsible for formulating rules, frameworks, and policies for listing, trading, and clearing. Subsequently, he served as the head of the Financial Services Regulatory Authority for the global markets in Abu Dhabi for six years. In August 2021, Richard Teng joined Coin An as the CEO of Coin An Singapore. From December 2021 to October 2022, he became the head of Coin An's Middle East and North Africa region. From November 2022 to April 2023, Richard Teng served as the Regional Director for Asia, Europe, Middle East, and Non US. This appointment in June made him the leader responsible for all regional markets outside of the United States.

Why did you choose to be appointed at this time point?

Some people believe that this is because Coin An is "establishing a reserve", while others believe that it is for Richard Teng to take over the "hot potato". On June 5 (the same day that Yuan'an was sued by the SEC), Bloomberg quoted insiders who said that if Changpeng Zhao left, Richard Teng was likely to take over as CEO of Yuan'an. From his over 20 years of experience in financial services and regulatory industry, it is evident that this appointment is aimed at helping Coin An address global regulatory issues.

The next day, King'an disclosed in a document that, in Canada, the hometown of the founder Changpeng Zhao, the securities regulatory authority had investigated King'an since May 10. Two days after the investigation was launched, on May 12th, Coin An withdrew from the Canadian market.

On June 1st, Coin Australia also announced the cessation of all Australian dollar trading pairs. Coin security users in Australia can no longer make Australian dollar deposits and withdrawals through bank transfers.

FellowBinancians, Weregretto informayouthat AUDdeposits and drawings by banktransfers are available to Binanceusers in Australia. BinancehascasedallAUDtradingpairsasofJune1. In order of facility with drawings and tradingactivities after June1, you

The difficulties faced by Coin An go far beyond Canada and Australia.

Coin An announced on June 2nd that it will delist 12 types of privacy coins in France, Italy, Poland, and Spain, including ZCash, Monero, and MobileCoin, which officially took effect on June 26th.

In the announcement, Coin Security once again mentioned "supervision" and "compliance", indicating that the removal of these Cryptocurrency is part of the "continuous compliance process" with regulators.

Reuters released an exclusive report, which said that GuangyingChen, a close friend of Changpeng Zhao and a senior executive officer of King'an, was responsible for managing five SilvergateBank accounts that belonged to BinanceUS. BinanceUS is an independent subsidiary of Coin Security in the United States, and the platform's funds should not be controlled by Coin Security.

Subsequently, a spokesperson for BinanceUS denied the report, claiming that no one except the official BinanceUS could control or access BinanceUS accounts.

On June 6, the U.S. Securities and Exchange Commission (SEC) formally filed a lawsuit against Yuan An, BinanceUS and Changpeng Zhao.

There are 13 allegations in SEC litigation, including operating unregistered exchanges, unregistered securities issuance and sales, misleading investors, concealing the manipulation of transactions by platform operators, affiliated Market maker, and transferring user funds at will.

At the same time, in the 136 page litigation documents of the SEC, the 12 Cryptocurrency sold on the currency security exchange were identified as securities. These tokens listed as securities include the original token BNB of Minan, the Stablecoin BUSD launched by Minan and Paxos, and popular tokens such as SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI. As soon as the SEC documents were released, the prices of these tokens collectively plunged in a short period of time.

Gary Gensler, the chairman of SEC, pointed out in a tweet that "Changpeng Zhao and Yuan'an Entity are involved in a wide range of fraud, conflict of interest, non disclosure of information and deliberate evasion of laws."

Throughshirt targets, weallegethat ZhaoandBinancentiiesengagedinnextensive web of concept, conflicts of interest, lake of disclosure, and calculatedevasionofthelaw https://t.co/E06hVOaYby

The public's response to this tweet can be imagined, after all, Gary Gensler's reputation in the encryption industry over the years can be described as' infamous'.

We do not trust Coin An and CZ, but we do not trust the SEC. We do not believe that the SEC can protect the interests of investors.

Changpeng Zhao also chose his usual way of responding - tweeting. He suggested that Gary Gensler read the comments under the tweet.

Wonderifeeverreadsthecommentsunderhispost, from the consumersheissupositoprotect https://t.co/xQjC872GsD

Cameron Winklevoss, co founder of Gemini on the exchange, has come up with an insightful summary: "In the past, you might have to do something wrong to be sued by the SEC, but now you have to do something right to be sued by the SEC.

Later, Changpeng Zhao also responded that "they did not sue FTX". FTX can be said to be the exchange that has caused the most negative impact and suffered the widest number of victims, but the SEC has never made any large-scale accusations against it.

Theydidn'tsueFTX https://t.co/FVgi5l6VcI

On June 7th, 24 hours after the SEC filed a lawsuit against Coin An, users of Coin An submitted assets exceeding $30 within a day, resulting in a negative net traffic of $143 million on the platform (data from the blockchain data analysis platform Nansen).

But this great war has just begun. On June 7th, the SEC took another step and requested a judge to issue a temporary restraining order to freeze assets related to BinanceUS.

Another document shows that if the temporary restraining order applied by the SEC is approved, BinanceUS will have 30 days to 'transfer all customers' encrypted assets to a new wallet with a new private key (including a new management key)'. According to the filing documents, this is to ensure that the information of Coin An's US customers is separated from other entities of Coin An.

Later, Changpeng Zhao promised on Twitter that even if the restriction order was approved, it would only affect the funds of BinanceUS, and not Binance.com.

Clarification: this couldonlyaff ectshttps://t.co/hSHrrlF7o7 IFgrantedbythecourt. ItdoesNOTaf fecthttps://t.co/9rMMAmc1G9.Fundsare#SAFUhttps://t.co/Xedzc0tyuM

On June 8th, the art style began to deviate slightly. This war suddenly evolved from a legal lawsuit between regulatory agencies and exchanges to Gary Gensler's personal "revenge".

The SEC pointed out that the reason why it proposed to freeze the assets of BinanceUS was that Changpeng Zhao and Yuan'an executives were accused of transferring more than 120 billion dollars of client funds to their own investment funds for use according to Changpeng Zhao's personal wishes, including the purchase of a $11 million yacht and the purchase of BUSD.

Subsequently, the lawyer for Coin An stated that Gary Gensler should fully avoid the SEC's lawsuit against Coin An, as he had been trying to "approach" the company before Gensler began investigating Coin An.

The lawyer disclosed that in 2019, Gensler was working at the Sloan School of Management of MIT. He had repeatedly proposed to serve as the "informal consultant" of King'an in his conversations with King'an executives and Changpeng Zhao. It is unclear why this advisor did not become the SEC's chairman in 2021.

A spokesman for the SEC said: "The chairman is very familiar with and fully complies with his Moral obligation, including any avoidance obligations."

In fact, after the FTX bankruptcy on the trading exchange, the public had already mocked Gensler for "taking revenge". Changpeng Zhao once played a role of "helping the flames" in the FTX crash - Coin An suddenly announced that it would completely acquire FTX, and then said that the "mess" was too big to accept. And Gensler himself has countless connections with SamBankman Fried, the founder of FTX, and Caroline Ellison, the CEO of Alameda Research under SBF. Therefore, there are also public associations that Gensler is "settling accounts" for Coin An this time.

This morning, CZ issued the latest response, denying the accusation of transferring $120 billion of funds for personal use. He stated that there are currently approximately $2 billion in user funds on the Binance. US platform, and unless users withdraw them themselves, these funds will never leave the Binance. US platform.

Thisisimplyfalse. Notsureifit's journalistorthesource. To be of my knowledge, https://t.co/hSHrrlF7o7hadintotalroughly $2billioninuserfunds. ThisnumberinUSDequivalentfluctuatesalettlescryptopriceschange. Anddecliningasmuserswithdrawdue... pic. Twitter. com/5dBPRaaNZN

SEC Chairman Genlser has also hit hard again. This time, it is not only aimed at Coin Security, but also at the entire encryption industry. In a public interview, he complained that the currency circle was full of fraudsters, saying that the current Cryptocurrency craze was reminiscent of the situation before the promulgation of the federal securities law in the 1920s, full of "low-level vendors (touts), fraudsters and fraudsters", and the public were queuing up in front of the bankruptcy court.

Today, this century long lawsuit has gradually evolved into a "war of words". It should be noted that the 13 charges filed by the SEC against Coin Security are all civil lawsuits, rather than the criminal charges related to money laundering previously encountered by BitMEX, a cryptocurrency exchange. In December last year, Reuters reported that the US Department of Justice had been violating the US anti money laundering laws and sanctions since 2018, but there were still differences within the Ministry of Justice. Some prosecutors could file criminal proceedings against the US Department of Justice and Changpeng Zhao, while other prosecutors believed that the evidence was not sufficient, so the US Department of Justice's charges have not yet been issued.