SEC Sues Binance and CEO for Breaking Securities Rules

Wall Street’s main regulator accused Binance Holdings Ltd. and its Chief Executive Officer Changpeng Zhao of breaking U.S. securities rules, a major escalation in the legal woes facing the crypto exchange.

In a case filed in U.S. federal court on Monday, the U.S. Securities and Exchange Commission alleged that the firm flouted investor protection rules by operating unregistered exchanges, misrepresenting trading controls and selling unregistered securities, among other violations.

“Through 13 charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” SEC Chair Gary Gensler said in a statement. “The public should beware of investing any of their hard-earned assets with or on these unlawful platforms.”

A representative for Binance didn’t immediately respond to a request for comment. On Twitter, Zhao said his team would review the complaint.

Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits.

We will issue a response once we see the compliant. Haven’t seen it yet. Media gets the info before we do.