The
Securities and Exchange Commission (SEC ) has filed 13 charges against
cryptocurrency exchange Binance, two affiliated entities and Founder/CEO
Changpeng Zhao. The US securities watchdog accused Binance and Zhao of
operating illegal trading platforms, offering unregistered crypto asset
securities and commingling customers’ funds.
It also
alleged that Binance operated as an exchange, broker-dealer and clearing agency
without authorization. US derivatives watchdog, the Commodity Futures Trading Commission, made similar allegationsagainst Binance and Zhao two months ago.
In a
complaint filed before a district court in Columbia, SEC
alleged that Binance Holdings operated unregistered crypto exchanges
Binance.com and
Binance.US, its US arm. The regulator further accused Binance of tweaking its
controls to enable high-value US customers to trade on Binance.com contrary to
the exchange’s public claim that US clients were barred from the platform.
In addition, SEC
alleged that affiliated entities BAM Trading and BAM Management together with Binance offered and sold the
crypto exchange’s unregistered token and stablecoin
