On Monday, the United States Securities and Exchange Commission (SEC) dealt a significant blow to the crypto market by filing a lawsuit against Binance, one of the world’s largest crypto exchanges, and its CEO, Changpeng Zhao. 

The lawsuit alleges the misuse of customers’ funds and the operation of an illegal trading platform within the United States. Consequently, the news triggered a sharp decline in Bitcoin prices and crypto stocks like Coinbase Global.  

SEC Alleges Misuse of Funds and Illegal Operations by Binance

In a complaint filed in a federal court in Washington, D.C., the SEC listed 13 charges against Binance, Zhao, Binance’s CEO,  and the operator of its independent US exchange. The regulatory body accused Binance and Zhao of misusing customers’ funds, diverting them to a trading entity called Sigma Chain, which was under Zhao’s control. 

Additionally, the SEC claimed that Sigma Chain engaged in manipulative trading practices, artificially inflating the trading volume of crypto asset securities on the Binance.US platform.

The regulator further asserted that Binance and its CEO commingled billions of dollars in customer assets and diverted them to a third-party entity named Merit Peak, also owned by Zhao. To address these concerns, the SEC requested a freeze on Binance’s assets and the appointment of a receiver to overse

Go to Source to See Full Article
Author: Scott Matherson

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details