{"id":1944342,"date":"2023-06-05T12:37:02","date_gmt":"2023-06-05T16:37:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sec-sues-binance-and-its-ceo-accusing-them-of-mishandling-funds\/"},"modified":"2023-06-05T12:39:42","modified_gmt":"2023-06-05T16:39:42","slug":"sec-sues-binance-and-its-ceo-accusing-them-of-mishandling-funds","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sec-sues-binance-and-its-ceo-accusing-them-of-mishandling-funds\/","title":{"rendered":"Binance and CEO sued by SEC for mishandling funds."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsec-sues-binance-and-its-ceo-accusing-them-of-mishandling-funds%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1944342&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The SEC Files Lawsuit Against Binance and CEO for Mishandling Customer Funds<\/h2>\n<blockquote><p>The Securities and Exchange Commission has filed a lawsuit against the world\u2019s largest cryptocurrency exchange and its CEO.<\/p><\/blockquote>\n<p>The action was revealed in a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hunter-biden-art-dealer-served-jail-time-and-allegedly-defrauded-investor\/\" title=\"Hunter Biden Art Dealer Served Jail Time and Allegedly Defrauded Investor\">federal court filing<\/a> on Monday. The SEC is accusing Binance and its CEO, Changpeng \u201cCZ\u201d Zhao, of lying to federal regulators as well as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/beleaguered-crypto-billionaire-was-hobnobbing-at-white-house-just-six-months-ago\/\" title=\"Beleaguered Crypto Billionaire Was Hobnobbing at White House Just Six Months Ago\">mishandling customer funds<\/a>.<\/p>\n<h3>What is ESG and How Does it Affect You?<\/h3>\n<p>The SEC said that Binance had been secretly diverting customer funds to another trading entity controlled by Zhao, Sigma Chain, which then engaged in fraudulent trading, which made Binance\u2019s volume appear bigger than it was. The complaint accuses Binance and Zhao of \u201cblatant disregard\u201d for federal securities law.<\/p>\n<p>\u201cIn doing so, Defendants have enriched themselves by billions of U.S. dollars while placing investors\u2019 assets at significant risk,\u201d the SEC alleged in the lawsuit.<\/p>\n<p>Zhao himself tweeted about the lawsuit soon after the news broke. He said that Binance has still yet to read the lawsuit in question.<\/p>\n<p>\u201cOur team is all standing by, ensuring systems are stable, including withdrawals, and deposits,\u201d Zhao said. \u201cWe will issue a response once we see the complaint. Haven&#8217;t seen it yet. Media gets the info before we do.\u201d<\/p>\n<p>The lawsuit adds to the regulatory troubles facing the cryptocurrency giant.<\/p>\n<p>In March, the Commodity Futures Trading Commission announced it was suing Binance and Zhao for allegedly breaking U.S. regulatory law, labeling the firm\u2019s compliance efforts a \u201csham.\u201d The regulators charged that Binance, Zhao, and other entities operate the exchange in violation of CFTC regulations and the Commodity Exchange Act.<\/p>\n<p>The complaint also accuses Binance\u2019s former chief compliance officer, Samuel Lim, of aiding and abetting the platform\u2019s alleged violations.<\/p>\n<p>The CFTC argues that Zhao and Lim worked in tandem to lure U.S.-based trading customers, even though Binance doesn\u2019t have permission to operate domestically. Regulators said in a news release at the time that Binance operates the exchange through numerous corporate entities and through \u201can <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sec-sues-binance-and-its-ceo-accusing-them-of-mishandling-funds\/\" title=\"Binance and CEO sued by SEC for mishandling funds.\">intentionally opaque common enterprise<\/a>.\u201d<\/p>\n<p>The CFTC added that the defendants engaged in \u201ca calculated strategy of regulatory arbitrage to their commercial benefit.\u201d<\/p>\n<h3>Bitcoin and Ethereum Tumble in Response to the News<\/h3>\n<p>News about the world\u2019s largest crypto exchange coming under further scrutiny caused bitcoin, the flagship cryptocurrency, to tumble on Monday. Bitcoin lost about 3% of its total value in the minutes after the news broke, falling to about $26,400. Ethereum dropped about 2.9%.<\/p>\n<p>Binance coin, a digital token developed by Binance, began plunging in response to the news. The cryptocurrency was down more than 5% in the minutes after the SEC lawsuit was revealed and accelerated to about 8% as more investors learned about the lawsuit.<\/p>\n<ul>\n<li>Binance and its CEO are being sued by the SEC for mishandling customer funds and lying to federal regulators.<\/li>\n<li>The cryptocurrency giant is also facing regulatory troubles from the CFTC for allegedly breaking U.S. regulatory law.<\/li>\n<li>Bitcoin, Ethereum, and Binance coin all tumbled in response to the news.<\/li>\n<\/ul>\n<p>Stay tuned for updates on this developing story.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC has sued Binance and its CEO for allegedly lying to regulators and mishandling customer funds. The world&#8217;s largest cryptocurrency exchange is facing legal action, as the SEC accuses Changpeng Zhao of wrongdoing.<\/p>\n","protected":false},"author":1,"featured_media":1944343,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[8369,3850,4543,15894,5266],"class_list":["post-1944342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-binance","tag-ceo","tag-funds","tag-mishandling","tag-sued"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1944342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1944342"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1944342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1944343"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1944342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1944342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1944342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}