Home Business Binance is sued by another US regulator, sparking plunge in cryptocurrency values and shares

Binance is sued by another US regulator, sparking plunge in cryptocurrency values and shares

by news

The world’s largest cryptocurrency exchange is accused of misusing investor funds and operating as an unregistered exchange.
Monday 5 June 2023 22:15, UK
US regulators have filed a lawsuit against cryptocurrency exchange Binance, alleging a string of violations including the misuse of investor funds.
Cryptocurrencies and shares in crypto and blockchain-related companies tumbled after the Securities and Exchange Commission (SEC) revealed 13 charges against the world’s largest exchange and its founder Changpeng Zhao.
The watchdog claimed they artificially inflated trading volumes and diverted customer funds, and also failed to restrict US customers from its platform and misled investors about market surveillance controls.
Be the first to get Breaking News
Install the Sky News app for free
Its lawsuit further accused them of secretly controlling customers’ assets, allowing them to mingle and divert investor funds „as they please”.
Binance responded by saying it would „defend our platform vigorously”.
It added that, in its view, the SEC’s powers were limited because it was not a US exchange.
The sell-off in values was predictable given historic volatility for prices in times of trouble.
CBI sweats on crunch vote that will determine if it has a future
Cost of living – latest: This is how much more men have for retirement than women; Britons ‘increasingly tampering with energy meters’
CBI pension trustees weigh options with lobby group’s fate in balance
Bitcoin, the world’s biggest cryptocurrency was down 5.3% – falling to its lowest level since mid-March.
Binance’s cryptocurrency fell 9.4%.
Shares of rival crypto exchange Coinbase Global were down 11.6%.
Click to subscribe to The Ian King Business Podcast
In March, Binance and Zhao were sued by the US Commodity Futures Trading Commission for operating what the regulator said was an „illegal” exchange and a „sham” compliance program.
The charges against Binance have dented a rally for crypto values following a torrid 2022.
Please use Chrome browser for a more accessible video player

The collapse in November last year of FTX and the subsequent arrest of its founder, Sam Bankman-Fried, raised the focus of regulators on the sector.
Coinbase was earlier this year sent a ‘Wells Notice’ by the SEC which is usually an indicator of looming legal action.
Sky.com Homepage © 2023 Sky UK


Related Posts