SEC sues crypto giant Binance, alleging it operated an illegal exchange

The U.S. Securities and Exchange Commission on Monday sued Binance and its CEO, Changpeng Zhao, alleging the cryptocurrency company was effectively operating an illegal exchange and diverted investors’ funds into a trading entity controlled by Zhao.

The lawsuit, filed Monday in federal court in Washington, D.C., claims Binance ran its trading operations without registering with the SEC, as required by law, in order to “evade the critical regulatory oversight” aimed at protecting investors and markets. 

Binance, the world’s largest crypto-currency exchange, allegedly commingled and diverted customers’ assets, steps that registered financial firms wouldn’t be able to do, the agency claims. The SEC also charges that Zhao and Binance redirected “billions of U.S. dollars of customer funds” into an account controlled by Zhao.

“Defendants’ purposeful efforts to evade U.S. regulatory oversight while simultaneously providing securities-related services to U.S. customers put the safety of billions of dollars of U.S. investor capital at risk and at Binance’s and Zhao’s mercy,” the lawsuit claims.

The lawsuit also alleges Binance defrauded customers by claiming they had controls in place to monitor “manipulative trading.”

Binance didn’t immediately respond a request for comment. 

This is a developing story and will be updated.

Read original article here

Denial of responsibility! Bulletin Reporter is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – admin@ . The content will be deleted within 24 hours.

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More