The U.S. Securities and Exchange Commission (SEC) has expanded its lawsuit against Binance, now classifying additional tokens, including Axie Infinity (AXS), Filecoin (FIL), and Cosmos (ATOM), as unregistered securities.
This development is part of the SEC’s ongoing efforts to regulate the cryptocurrency industry and enforce compliance with securities laws. The SEC in the updated legal filings accuses Binance and its U.S. affiliate, BAM Trading, of facilitating the trading of these tokens without proper registration and promoting them as investment opportunities.
According to the SEC, Binance violated the law by selling BNB (their cryptocurrency) to employees after their Initial Coin Offering (ICO) without registering it, thus breaching Section 5 of the Securities Act.
The update also addresses previous issues related to Binance’s unregistered sales of a product called “simple earn,” once again violating the same law.
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