The post Breaking: SEC Files Lawsuit Against Binance Exchange Alleging Violations of U.S. Regulations appeared first on Coinpedia Fintech News

Binance, the largest cryptocurrency exchange in the world in terms of trading volume, is currently facing various legal challenges in the United States. Binance Holdings Ltd. and its CEO, Changpeng Zhao, have been alleged to have violated US regulations, as stated in a filing made by the Securities and Exchange Commission in a federal court, as reported by Bloomberg.

SEC Chairman Gary Gensler said in a statement, “Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”

“As alleged, Zhao and Binance misled investors about their risk controls and corrupted trading volumes while actively concealing who was operating the platform, the manipulative trading of its affiliated market maker, and even where and with whom investor funds and crypto assets were custodied,” he added.

Zhao has acknowledged the situation and indirectly told everyone to ‘Ignore FUD, fake news, attacks.’ He wrote on Twitter,

“Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.”

Since the FTX incident in November, there has been an increase in regulatory actions against the crypto industry. Gensler has been particularly aggressive in his approach toward cryptocurrencies. Furthermore, Kraken, another cryptocurrency exchange, settled a legal matter related to possible violations of sanctions on Iran. As part of the settlement, Kraken agreed to pay $362,000 to the Office of Foreign Assets Control (OFAC) within the US Treasury Department.