Crypto leaders call SEC lawsuits an inside job

The storm of SEC lawsuits hitting flagship crypto exchanges Binance and Coinbase are sweeping the community like a storm. Insider trading accusations have skyrocketed, coming from heavyweights in the crypto market.

The titanic claim suggests that Wall Street and government regulators may have orchestrated an insidious plan, calling into question the integrity of these stocks.

SEC lawsuits against Binance and Coinbase

The United States Securities and Exchange Commission (SEC) recently dealt a major blow to Binance, the world’s largest crypto exchange. Indeed, he accused the platform and its founder, Changpeng Zhao, of multiple regulatory violations.

According to the SEC, Binance and Zhao engaged in “an extensive web of deception, conflicts of interest, lack of disclosure, and calculated circumvention of the law.”

The alleged crimes range from mismanaging billions of dollars in user funds to contrived schemes allowing deep-pocketed US investors to circumvent the regulatory framework of Binance’s international exchange.

“Through thirteen counts, we allege that the Zhao and Binance Entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated circumvention of the law,” said Gary Gensler, Chairman of the SEC.

However, the SEC onslaught didn’t stop there. Coinbase, a key pillar of the crypto industry, has also found itself in the regulator’s crosshairs. The company allegedly acted as an unlicensed broker and exchange.

The allegation claims that Coinbase’s major brokerage, exchange, and staking programs violate securities laws.

“We allege that Coinbase, despite being subject to securities laws, illegally mixed and offered the exchange, brokerage and clearing house functions,” Gensler asserted.

These lawsuits have made the crypto market look suspicious, sparking debate over the SEC’s intentions.

Crypto Leaders Call for Inside Jobs

Among the swirling questions, a haunting hypothesis emerges. Could this all be an inside job? Are regulators aiming to wipe crypto exchanges off the map to pave the way for Wall Street dominance?

Prominent figures in the crypto space have weighedcasting suspicion on the timing of Wall Street’s sudden interest in the crypto sphere.

Preston Pysh, the co-founder of the Investor Podcast, posited that recent demands from Wall Street titans such as Blackrock, Fidelity, Citadel, Schwab, and Deutsche Bank for Bitcoin ETFs and spot exchanges suggest an orchestrated move. .

“How can you not think that the whole past year has been a giant coordinated inside job between Wall Street parasites and government regulators so they can catch up,” said Pysh.

Similarly, Michaël van de Poppe, an esteemed crypto trader, Underline the strange synchronicity of these applications and the actions of the SEC against Binance and Coinbase.

Van de Poppe’s sentiment is echoed by Will Clemente. The co-founder of Reflexivity Research questioned the sudden interest of these Wall Street powers in a supposed “worthless Ponzi scheme”.

All [of these firms] trying to get a piece of bitcoin/crypto because they think it’s a ponzi scheme worthless as it has no intrinsic value and is only used for money laundering, don’t is this not ? » said Clement.

On the other hand, Professor JW Verret underline the potential damage that the SEC’s legal assault could do to investors. Verret compared the fallout from the lawsuits to the devastation caused by Bernie Madoff’s infamous Ponzi scheme.

The confluence of these factors paints a troubling picture. It’s a narrative that involves an insidious power play between Wall Street and government regulators. It has the potential to shake up the crypto industry.

As the storm continues to rage, one thing is clear: the future of crypto is at a critical juncture. Indeed, its fate is now in the hands of entities far removed from the spirit of decentralized finance.