The US SEC prosecuted Binance and Zhao Changpeng with suspected violation of the secur

The US Securities and Exchange Commission (SEC) Monday (June 5) sued Zhao Changpeng, the world's largest cryptocurrency exchange Binance and the founder and controlling shareholder of Binance.SEC believes that Binance is suspected of violating the US securities supervision system.

Comprehensive Reuters and Wall Street Journal reported that in the appeal submitted by the US SEC in a federal court in Washington, the US SEC listed 13 charges of 13 charges of 13 charges of Binance, Zhao Changpeng and the US exchange operators under the United States.Including the alleged entities of Zhao Changpeng and Binance participated in extensive fraud, conflicts of interest, lack of disclosure and intentional evasion of the legal network.

SEC charged in the appeal that Binance evaded illegal acts such as the supervision of the United StatesProtection rules.SEC said that one of the reasons for the prosecution is the sale of currency and stable coin BUSD for Binance without registered.

SEC charged, from nearly three years ago to June 2022, Sigma Chain was engaged in money laundering transactions, artificially exaggerated the transaction volume of crypto asset securities on the Binance.us platform.

SEC also said that Binance secretly controlled customers' assets, mixed and transferred investor funds as they wanted, and misled investors on risk control issues.SEC believes that Zhao Changpeng and Binance tried to subvert the control of the US regulatory agency in order to allow US high net worth investors and customers to continue to trade in the international exchanges that are not regulated by Binance.

People familiar with the matter revealed that Binance is currently investigated by the US Department of Justice for suspected money laundering and violations of sanctions.The Wall Street Journal said that the legal lawsuit exacerbated the legal dilemma facing Binance.

Gary Gensler, chairman of the SEC, said in a statement: "We accused Zhao Changpeng and Binance entities participating in a wide range of fraud networks, conflicts of interests, lack of disclosure and carefully avoiding the law."

Binance stated in a blog post:" We intend to vigorously defend our platform "," Because Binance is not an US exchange, the scope of the SEC operation is limited. "

The United States, the United States, also stated in a tweet that this legal lawsuit "is unreasonable in terms of facts, law, or the committee's own precedent."

After the news came out, the world's largest cryptocurrency Bitcoin fell 6%to the lowest point in nearly three months.Binance's own cryptocurrency and Bonnam (BNB) fell more than 5%.