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The world&#8217;s largest cryptocurrency exchange, Binance, and its founder Changpeng Zhao have been sued by the Securities and Exchange Commission (SEC) for allegedly operating an illegal exchange in the United States. 



The SEC claims that Binance and Zhao misused customers&#8217; funds and redirected them to a trading entity controlled by Zhao, named Sigma Chain, which engaged in fraudulent trading to inflate Binance&#8217;s trading volume. 



The lawsuit was filed in a federal court in the District of Columbia and adds to Binance&#8217;s ongoing challenges with U.S. regulators, including an earlier allegation by the Commodity Futures Trading Commission and an ongoing investigation by the Justice Department regarding money laundering detection.



In a tweet, CZ said Binance hadn’t seen the complaint and would respond once it did. “Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits,” he added, referring to the possibility of customers pulling funds.



According to the SEC, Binance is also accused of selling cryptocurrencies, such as BNB and BUSD, without adhering to investor-protection regulations. 



CoinDesk data indicates that the value of BNB experienced a decline of over 5% within the past 24 hours, with a pre-announcement decrease of 2.5%.
The post <a rel="nofollow" href="https://www.unlock-bc.com/102923/sec-files-13-charges-against-binance-entities-and-founder-changpeng-zhao/">SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao</a> appeared first on <a rel="nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao

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