DThe US Securities and Exchange Commission wants to freeze the US assets of the world’s largest cryptocurrency exchange Binance. Therefore, on Tuesday, authorities applied to a US federal court for an appropriate temporary injunction. On Monday, the SEC sued Binance and its boss, Changpeng Zhao. Authorities accuse Binance of operating an unlicensed securities exchange. In addition, Binance misled investors about market control and failed to keep US customers away from its platform.
Other allegations revolve around manipulating the stock market through fictitious transactions and diverting client funds. The company also set up subsidiaries in the US to circumvent the law. Founded in 2017, the exchange processed $23 trillion worth of transactions last year, according to industry service CryptoCompare. Binance called the allegations baseless.
“We allege that Zhao and Binance are engaged in an extensive web of deceit, conflicts of interest, non-disclosure, and willful evasion of the law,” SEC chief executive Gary Gensler said in a statement. For example, investors have been misled about risk control and trading volumes. “The public should be wary of pouring their hard-earned wealth into these illicit platforms.”
Source: Frantfurter Allgemeine
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