US financial regulators hit Binance with another lawsuit

Binance, the crypto giant, has come under fire once again, as the business and its owner are accused of deceitful acts of mishandling funds.

One of the largest marketplaces in the world for buying and trading cryptocurrencies as well as other digital assets is Binance, based and registered in the Cayman Islands.

The Securities and Exchange Commission’s (SEC) lawsuit has made 13 allegations against the company and its founder Changpeng Zhao, including misrepresenting the volume of tradeoffs on the platform along with, deceiving the public about its control.

Binance and Mr. Zhao, according to the SEC, disregarded the laws intended to safeguard investors in order to continue doing business in the US. The business and Mr. Zhao are both charged with improper management of customer payments.

The SEC claimed in its complaint that Binance and Mr. Zhao have free control over billions of dollars’ worth of US-sourced crypto assets.

Binance, however, has stated clearly that it will continue to protect the platform. The business, which was established in 2017 and operates across 100 different countries, denied that client money had ever been in danger.

Following promises by the US to more aggressively oversee the cryptocurrency business, the SEC complaint is not the first brought against the company this year.

Another US financial authority, the Commodity Futures Trading Commission, launched a separate complaint against Binance in March, stating that it was conducting business unlawfully. The Department of Justice has assured the public that, they are looking into it.