S.E.C. Accuses Binance of Mishandling Funds and Lying to Regulators

In a massive lawsuit filed in federal court on Monday, the Securities and Exchange Commission accused Binance, the world’s largest cryptocurrency exchange, of mishandling customer funds and accusing regulators and investors of its operations. accused of making false statements.

Wall Street regulators have said that Binance had commingled “billions of dollars” of customer funds and secretly sent them to another company controlled by Binance founder Zhao Changpeng.

The charges included misleading investors about the adequacy of systems to detect and manage manipulative trading. The regulator also said Binance has not taken sufficient measures to restrict US investors from accessing Binance’s unregulated exchange.

“We argue that Zhao and Binance entities not only knew the traffic rules, but consciously chose to circumvent them and put their customers and investors at risk,” said the SEC Enforcement Director. said Gerbil S. Grewal of

The country’s top securities regulator has filed 13 indictments against Binance and Chao, better known as “CZ” in the crypto industry. More than a month after the Commodity Futures Trading Commission filed its own civil enforcement action against Binance and Mr. Chao, the SEC is taking action. Mr. Zhao.

The move against Binance and Chao comes after criminal charges were filed against FTX founder Sam Bankman-Freed, who was a major rival to Binance in the crypto trading world until FTX collapsed and filed for bankruptcy last November. It happened a few months later.

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