The Securities and Exchange Commission (SEC) has filed a lawsuit against Binance. The SEC alleges that Binance mishandled customer funds and lied to regulators and investors about its operations.
According to the SEC, Binance mixed customer funds worth billions of dollars and secretly transferred them to a company controlled by Binance’s founder, Changpeng Zhao. The charges include misleading investors about the adequacy of Binance’s systems to detect manipulative trading and failing to restrict US investors from accessing its unregulated exchange. The SEC filed 13 charges against Binance and Zhao, who is known as “C.Z.” in the crypto world.
Gurbir S. Grewal, director of the SEC’s enforcement division, stated that Zhao and Binance consciously chose to evade the rules and put their customers and investors at risk. The lawsuit comes a little over a month after the Commodities Futures Trading Commission filed a civil enforcement action against Binance and Zhao. Earlier this year, Sam Bankman-Fried, the founder of FTX, another major crypto exchange, faced criminal charges.
This is a developing story. Check back for updates.
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Source: https://news.coincu.com/192332-sec-sues-binance-and-cz-for-breaking-us-securities-rules/