Binance could face fraud charges but US regulators are concerned over this factor

August 2, 2023

By Priya NV

• The US regulator is considering bringing in more charges against the world’s largest crypto exchange

• However, the regulators fear the action would result in customers losing money

Binance – the world’s largest crypto exchange – has been the talk of the market ever since the US Securities and Exchanges Commission [SEC] launched a lawsuit in June 2023. And, the exchange’s regulatory burden seems to only be growing.

The regulators now considering bringing fraud charges against the exchange. However, there seems to be one aspect that is holding back the US regulatory authorities.

Regulators hiccup with Binance

According to Semafor, the aspect holding back the regulators is the fear of a bank run similar to the one FTX faced back in November 2022. The bank run was a result of widespread panic over reports of FTT dominating its balance sheet. This resulted in the exchange facing a liquidity crisis, eventually declaring bankruptcy along with its affiliated companies.

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