The US Securities and Exchange Commission sued the Binance crypto exchange
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Today the US Securities and Exchange Commission (SEC) reported about filing a lawsuit against the world’s largest cryptocurrency exchange Binance and its founder Changpeng Zhao. The filing, filed with the District of Columbia Court, alleges that the exchange and Mr. Zhao violated US law on 13 counts.
In particular, the SEC believes that the exchange and its founder lied, saying that US customers cannot transact on the Binance.com international platform, when in fact, wealthy individuals were tacitly granted such a right. In addition, the exchange and its founder claimed that the American division of Binance.US is a separate independent trading platform for American investors, but in fact, Changpeng Zhao and Binance secretly controlled operations on Binance.US.
In addition to defrauding authorities and investors, the SEC accuses Binance of operating without a standard exchange license for trading in valuable assets, brokerage and clearing services. Binance is also accused of unauthorized issuance and trading in the US of BNB tokens, Binance USD stablecoins, and a number of other crypto-pegged products.
“We accuse Changpeng Zhao and Binance of creating an extensive network of deception, conflict of interest, withholding important information, and deliberate violation of laws,” said SEC head Gary Gensler. “They misled investors about risk control tools and the actual management system of the exchange, manipulated trading” .
It is not reported what punishment Changpeng Zhao and Binance may face if found guilty. The exchange itself and its founder have not yet commented on the SEC lawsuit. Previously, claims have already been filed against Binance by others regulators in North America.
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