US accuses world’s largest cryptocurrency exchange Binance of mishandling funds

Binance and its CEO Changpeng Zhao were sued by the SEC (Picture: REUTERS)

The United States Securities and Exchange Commission has sued Binance, the world’s largest cryptocurrency exchange, accusing the company of mishandling customer funds.

The charges, filed Monday in federal court, accuse the crypto giant and its CEO Changpeng Zhao of creating ‘an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,’ SEC Chairman Gary Gensler said.

The lawsuit comes months after Binance’s former top competitor FTX collapsed in part due to similar allegations of mishandling customer funds.

The company is now in bankruptcy, and its disgraced CEO Sam Bankman-Fried is now facing criminal charges for securities fraud and wire fraud.

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