Binance Faces SEC Lawsuit for Misuse of Investor Funds and Misleading Practices

Binance, a cryptocurrency exchange, has been sued by the US Securities and Exchange Commission (SEC) for alleged violations including misuse of investor funds, artificially inflating trading volumes, and allowing US customers to use its platform despite being barred.

06 June 2023 · 04:12 UTC

Binance and its founder Changpeng Zhao are also accused of secretly controlling customers' assets, misleading investors about market surveillance controls, and mingling and diverting investor funds.

Binance has stated it will "defend our platform vigorously." The lawsuit has caused a sell-off in cryptocurrency values and shares of crypto and blockchain-related companies, with Bitcoin falling 5.3% and Binance's cryptocurrency falling 9.4%.