Recently, there has been speculation in the digital asset community that the Securities and Exchange Commission (SEC) may sue Crypto.com, a popular exchange and financial services provider. This comes after the SEC filed similar lawsuits against two other major exchanges, Coinbase and Binance, for selling “securities” without “proper” registration.
CryptoTea, a pseudonymous crypto enthusiast, has pointed out that the SEC has specifically named several tokens that are sold on Crypto.com as potential securities, including Solana, Sandbox, MATIC, CHZ, BNB, MANA, ALGO, and more. Moreover, the US-based exchange has launched its token, CRO, and offers staking services, which could also potentially be viewed as selling securities.
Due to these factors, there is growing speculation within the community that the exchange could potentially be targeted by the SEC for legal action. The regulatory body has explicitly stated its zero tolerance towards exchanges engaging in the sale of unregistered securities, and there is a prevailing belief that the exchange’s involvement with digital assets, including its own CRO token, might attract scrutiny from the commission.
Furthermore, in the early hours of the morning, a large Crypto.com user sent a significant amount of funds to Binance. According to reports by Arkham Intel, the user transferred 30,000 ETH, worth roughly $55.2 million at current prices. In addition to this, the user also sent $10 million in Tether (USDT) on the Polygon network.
The sending account reportedly deposits funds frequently from the exchange and Gate.io, with occasional deposits from an unlabelled address on the Binance Smart Chain. The transfer has raised eyebrows with many speculating about the reasons behind the large transfer.
Although it is not unusual for significant transactions to take place within exchanges, there are indications that this particular transfer could be linked to the ongoing regulatory crackdown by the SEC in the industry. As a result, apprehensions have arisen regarding the future of Crypto.com and the possibility of it encountering a fate akin to that of Coinbase and Binance. Both of these exchanges have faced lawsuits from the SEC for their involvement in the sale of unregistered securities.
