The U.S. Securities and Exchange Commission (SEC) has broadened the scope of its claims in its lawsuit against cryptocurrency exchange Binance, designating a number of additional digital assets as securities.
The SEC lists more tokens as securities in its most recent regulatory filing, including Cosmos (ATOM), Filecoin (FIL), and Axie Infinity (AXS).
The update also affects other tokens, such as Decentraland (MANA) and The Sandbox (SAND).
These securities are now categorized as unregistered securities, and the SEC claims that Binance and BAM Trading enabled the trading of these securities. The filing claims that Binance further established its liability by highlighting the potential return on investment of these tokens when promoting them to users.
“Binance and BAM Trading are flooding these markets with information by republishing and amplifying their issuer and supporting statements, thereby promoting the tokens as investment opportunities,” the SEC said.
The SEC was able to submit an updated complaint against Binance and Zhao as a result of today’s events.
*This is not investment advice.