SEC Sues Binance and CEO Zhao for Breaking Securities Rules
- Regulator says firm operated unregistered securities exchange
- Binance routinely flouted basic KYC rules, SEC alleges
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The US Securities and Exchange Commission accused Binance Holdings Ltd. and its Chief Executive Officer Changpeng Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules.
In a 136-page complaint filed Monday in US federal court in Washington, the SEC laid out a range of alleged violations against the world’s biggest crypto exchange and its leader. For years, they flouted basic know-your-customer rules by letting Americans improperly open accounts and trade, the watchdog said. It’s just the latest legal headache for Zhao and Binance.