S.E.C. Accuses Binance of Mishandling Funds and Lying to Regulators

The S.E.C. said the world’s largest cryptocurrency exchange mixed billions of dollars in customer funds and secretly sent them to a separate company controlled by Binance’s founder, Changpeng Zhao.

Highlights

• The S.E.C.
• said Binance mixed billions of dollars in customer funds and secretly sent them to a separate company controlled by Binance’s founder, Changpeng Zhao.
• Regulators have long seen the exchange as a major target in their quest to bring to heel a crypto industry that has been built around an explicitly anti-government ethos.
• U.S.-based customers were supposed to have access only to an ostensibly separate company formed specifically to operate within the United States, called BinanceUS.US.
• The complaint also said the exchange had misled investors about the adequacy of its systems to detect and control manipulative trading.

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