u.today
In a striking turn of events, Binance, the world's largest crypto exchange, and its CEO Changpeng Zhao have been sued by the Securities and Exchange Commission (SEC) for allegedly breaching US securities rules, as reported by Bloomberg.
In its lawsuit, the formidable regular alleges mishandling of customer funds, false statements to regulators and investors, inadequate control of manipulative trading, and knowingly violating rules that put customers and investors at risk.
The price of Binance's native BNB token has plunged by more than 6% on the news.
The SEC lawsuit marks another regulatory body's crackdown on the crypto giant, following a similar action taken by the U.S. Commodity Futures Trading Commission (CFTC) back in March.
The CFTC accused Binance and its CEO of operating an "illegal" exchange with a "sham" compliance program, accusing them of intentionally evading U.S. law for commercial gain.
This is a developing news story. Stay tuned for more updates.