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

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

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

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

Binance Holdings Ltd. has been sued by the U.S. Securities and Exchange Commission for allegedly violating investment laws in the country. The financial regulators said the crypto company misused funds and engaged in a