Binance mishandled funds and violated securities laws, according to SEC lawsuit

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — The world’s largest cryptocurrency exchange Binance and its founder Changpeng Zhao are accused of misusing investor funds, operating as an unregistered exchange and violating a slew of U.S. securities laws in a lawsuit filed by the SEC. Filed in the U.S. District Court for the District of Columbia, the Securities and Exchange Commission lawsuit on Monday lists thirteen charges against the firm — including commingling and divert customer assets to an entity Zhao owned called Sigma Chain. Binance is a Cayman Islands limited liability company founded by Zhao.