The SEC sued Binance and its boss Changpeng Zhao on Monday.
(Photo: Reuters)
Washington The US Securities and Exchange Commission wants to freeze the US assets of the world’s largest crypto exchange Binance. The authority therefore applied to a US federal court for a corresponding temporary injunction on Tuesday.
The SEC sued Binance and its boss Changpeng Zhao on Monday. The authority accuses Binance of operating an unlicensed securities exchange. In addition, the company misled investors about its market surveillance controls and failed to keep US customers away from its platform.
Other allegations revolve around the manipulation of stock market turnover with the help of sham transactions and the diversion of customer funds. The company also set up US subsidiaries in order to circumvent laws.
According to industry service CryptoCompare, the exchange, which was founded in 2017, processed transactions worth $23 trillion last year. Binance called the allegations unfounded.
More: US Securities and Exchange Commission also files lawsuit against Coinbase – share collapses
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