The SEC’s case against Binance, a live reading by Liz Lopatto
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So Sigma Chain was a market maker on Binance.US because it was Binance’s “own,” the complaint claims Zhao said. Merit Peak was also a market maker controlled by Zhao. “Sigma Chain’s and Merit Peak’s activity on the Binance.US Platform, and their undisclosed relationship with Zhao and Binance, have involved and continue to present conflicts between Zhao’s financial interests and those of Binance.US Platform’s customers,” the complaint says.
Also, one of the CEOs of BAM Trading didn’t like it:
“To the extent that these two liquidity providers were significant sources of liquidity, meaning that our customers couldn’t, you know, clear orders without the presence of those makers on our platform, I thought that was a real problem. It suggested that the company was, in fact, heavily dependent on CZ, not just as a control person but also as an economic counterparty and that is problematic, so I thought we needed to look into deplatforming them.”
