The world’s leading cryptocurrency exchange, Binance, and its CEO, Changpeng Zhao, are being charged with syphoning off investors’ funds and mishandling billions of dollars. The US Securities and Exchange Commission (SEC) alleges that Binance mixed customer funds and diverted them to a Zhao-controlled entity while publicly claiming that US customers were restricted from transacting on Binance.com.

Binance generated $116 billion in revenue

The SEC claimed that the founders violated the rules and regulations of the road, and knowingly put their customers and investors at risk. The federal court complaint alleges that between June 2018 and July 2021, Binance generated $11.6 billion in revenue primarily from transaction fees.

Lawsuit likely to have ripple effect on crypto industry

The lawsuit is likely to have a ripple effect through the crypto industry. Market players say the SEC’s charges could hobble Binance, which processes roughly $65 billion in trades daily, and thought to dominate cryptocurrency trading.

Read More Here https://www.theguardian.com/business/2023/jun/05/binance-sued-sec-cryptocurrency-accused-mishandling-funds

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