WASHINGTON: The United States Securities and Exchange Commission (SEC) on Monday launched legal action against the world’s largest cryptocurrency exchange platform, Binance, reported German news agency dpa.
The Washington-based SEC alleged Binance illegally performed financial transactions and services without the necessary authorisations, accusing Binance’s co-founder and chief executive Changpeng Zhao of deception and conflict of interest, among other things.
“Through thirteen 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,” said SEC chair Gary Gensler, adding that investors were misled about risk controls and trading volumes.
“We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk – all in an effort to maximise their own profits,” said Gurbir Grewal, director of the SEC’s division of enforcement.
Neither Binance nor Zhao was available for comment.
Bitcoin, Ether, and other cryptocurrencies slumped significantly after the announcement. US authorities have been investigating the company for years. In March, the financial regulator CFTC had already filed a lawsuit against Binance for rule violations in the US market. – BERNAMA-dpa
