SEC Accuses CZ of Liability as Control Person for Binance's Regulatory Violations

FACTS

IX. BINANCE AND BAM TRADING WERE REQUIRED TO BUT DID NOT REGISTER AS AN EXCHANGE, BROKER-DEALER, OR CLEARING AGENCY.

ELEVENTH CLAIM FOR RELIEF

Violations of Exchange Act Sections 5, 15(a), and 17A(b)

(Against Zhao as Control Person over Binance for the Binance.com Platform)

544. The Commission realleges and incorporates by reference herein the allegations in Paragraphs 1-35, 80-153, 282-338, and 352-513.

545. As alleged above, Binance violated Exchange Act Sections 5, 15(a), and 17A(b) [15 U.S.C. §§ 78e, 78o(a), and 78q-1(b)] in connection with its operation of the Binance.com Platform.

546. At all relevant times, Zhao was a control person of Binance for purposes of Exchange Act Section 20(a) [15 U.S.C. § 78t(a)].

547. At all relevant times, Zhao exercised power and control over Binance, including by managing and directing Binance, and by directing and participating in the acts constituting Binance’s violations of the securities laws.

548. By reason of the foregoing, Zhao is liable as a control person under Exchange Act Section 20(a) [15 U.S.C. § 78t(a)] for Binance’s violations of Exchange Act Sections 5, 15(a), and 17A(b) [15 U.S.C. §§ 78e, 78o(a), and 78q-1(b)].