Binance and Zhao allegedly undermined the company's own compliance, courted U.S. investors, and traded against its customers using market-making companies.

The SEC is suing Binance and its CEO, Changpeng Zhao. The WSJ reported the lawsuit accuses the world's biggest crypto exchange of operating an illegal exchange. Zhao tweeted Monday morning that the company had yet to see the complaint.

The U.S. Securities and Exchange Commission sued crypto exchange Binance, the operating company for Binance.US and Binance founder and CEO Changpeng "CZ" Zhao on allegations of violating federal securities laws on Monday.

Wall Street’s main regulator accused Binance Holding and its Chief Executive Officer Changpeng Zhao of breaking U.S. securities rules, a major escalation in the legal woes facing the crypto exchange.

The world's largest crypto exchange Binance and its CEO and founder Changpeng Zhao were sued by the U.S. Securities and Exchange Commission on Monday for failing to restrict U.S. customers from its platform and misleading investors about its market surveillance controls,

The U.S. Securities and Exchange Commission on Monday sued the world's largest crypto exchange and its CEO Changpeng "CZ" Zhao, alleging market manipulation, securities law violations and fraud. Why it matters: This is the culmination of a long-running investigation into Binance by U.S. regulators.

The SEC is suing Binance, the world's largest crypto exchange, and its CEO Changpeng Zhao for lying to regulators about its operations.