A former Securities and Exchange Commission (SEC) official believes that cryptocurrency asset owners should abandon their investments because the storm in the U.S. crypto industry is just beginning.
“Get out of crypto platforms now.. Having worked as a lawyer for the SEC for almost 20 years, I believe we now know for sure: cryptocurrency trading platforms are under the control of U.S. regulators/law enforcement,” John Reed Stark wrote on Twitter.
The former official recalled: cryptocurrency trading platforms, unlike SEC-registered companies, operate without oversight, and thus offer customers poor protection and poor risk identification. Also, cryptocurrencies lack security measures, according to a former SEC employee.
“Crypto platforms have little ability to detect, investigate and prevent fraud,” he explained.
Crypto exchanges also have no requirements regarding transactions or the use of internal platforms and payment systems by their employees. They have no reason to comply with laws and regulations prohibiting manipulation, insider trading and other fraudulent practices by customers or employees;
“Thanks for reading.. With my blessing, please feel free to incite hatred. Period,” Stark finished.
.
Earlier this week, the SEC made 13 legal claims against Binance and Changpeng Zhao. The lawsuit alleges that the company failed to limit access to the trading floor to U.S. customers and “misrepresented critical information by misleading investors about its market controls.”. The U.S. exchange removed ten trading pairs from its listings amid an SEC lawsuit against Binance;
Less than a day later, the SEC lawsuit also caught up with U.S. cryptocurrency exchange Coinbase. According to the lawsuit, Coinbase has been operating in the country since 2019 as an unregistered broker and trading cryptocurrencies, which are securities;
Bits.media recently ran a piece on why U.S. regulators have launched a systematic war against centralized crypto exchanges