Illustration by Alex Castro / The Verge
Binance, the world’s largest crypto exchange, operated illegally in the US, the US Securities and Exchange Commission alleges in a new lawsuit. Changpeng Zhao, the exchange’s founder, was named in the suit as well.
“Defendants have enriched themselves by billions of U.S. dollars while placing investors’ assets at significant risk,” the suit begins. It alleges that Binance and Zhao illegally solicited investors, engaged in multiple unregistered investment schemes, and “defrauded equity, retail, and institutional investors about purported surveillance and controls over manipulative trading on the Binance.US Platform, which were in fact virtually nonexistent.”
“We will issue a response once we see the complaint,” Zhao wrote on Twitter….
