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Comment by I_am_tiberius | Hacker News Reader

Not a Binance fan but in this context, and considering the SECs unwillingness of declaring when cryptocurrencies are securities or not, it's pretty clear that they go after Binance for strategic reasons. Not sure but I assume this is controlled by the Biden admin.

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> considering the SECs unwillingness of declaring when cryptocurrencies are securities or not

The SEC has been clear about ICOs from the start. BNB was launched in an ICO. Binance then traded it on its exchange. To the degree a security is being identified in this complaint, it's BNB. Nothing in this complaint is novel law.

Did they also do that on the Binance US exchange?

Isn't that one of the benefits of a lawsuit? The law is tested and needs to hold up under scrutiny.

Definitely not when the party who is suing you is the one that defines the rules. Thinking about the scenario of this lawsuit makes me really angry. It's some sort of power demonstration backed by a political strategy.

So they can argue in front of an independent 3rd party called a court.

They are alleging the exchange comingled customer funds and transferred them to another company controlled by Zhao. Why doesn’t that make you angry?

That makes me angry as well. It also makes me angry that my bank does something like this with the money I deposit.

I doubt this is the pivotal point for that case though.

It’s illegal to do this in a brokerage account, and FTX is an example of why. There is no legitimate reason to do it.

Sure, you're totally right. But look at the lawsuit. The item you listed is one of many. You have to see that this is part of a political strategy. Look at Coinbase...

They have been very clear. Everything except bitcoin. Crypto people just don't like the response.

Have they actually cleared Bitcoin in writing?

I'm not aware of that. I've seen the video of the chairman of the SEC recently, and for five minutes he refused to tell whether Ether is a security or commodity.

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