Financial watchdog alleges Binance lied to regulators and syphoned investors’ funds into separate company

The US Securities and Exchange Commission on Monday sued Binance and its CEO, Changpeng Zhao. The Wall Street Journal reported that the lawsuit accuses the world's largest cryptocurrency exchange of breaking US securities rules and for operating an illegal exchange.

The SEC’s complaint also alleged that Binance and Zhao secretly control customers’ assets, allowing them to commingle and divert customer funds.

U.S. regulators sued Binance and its CEO Changpeng Zhao on Monday for allegedly operating a "web of deception," piling further pressure on the world's biggest cryptocurrency exchange and sending bitcoin to its lowest in almost three months.

The SEC has sued Binance, BAM Trading Services, and founder Changpeng Zhao for violating U.S securities laws, including the operation of an unregistered exchange.

The Securities and Exchange Commission (SEC) has sued Binance and its founder Changpeng Zhao for violating security rules

Crypto exchange Binance and its chief executive officer Changpeng Zhao are being sued by US regulator the Securities and Exchange Commission.