SEC Claims that CZ's Control of Binance and BAM Trading Led to Regulatory Violations

FACTS

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

TWELFTH CLAIM FOR RELIEF

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

(Against Zhao as Control Person over Binance and BAM Trading for the Binance.US Platform Violations)

549. The Commission realleges and incorporates by reference herein the allegations in Paragraphs 1-35 and 80-513.

550. As alleged above, Binance and BAM Trading violated Exchange Act Sections 5, and 17A(b), and BAM Trading violated Exchange Act 15(a) [15 U.S.C. §§ 78e, 78o(a), and 78q1(b)] in connection with their operation of the Binance.US Platform.

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

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

553. 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 and BAM Trading’s violations of Exchange Act Sections 5, 15(a), and 17A(b) [15 U.S.C. §§ 78e, 78o(a), and 78q-1(b)].