Last year, the abrupt collapse of FTX and the downfall of CEO Sam Bankman-Fried had a reverberating effect on the crypto business and dominated conversations surrounding the technology. Now, another major cryptocurrency player is in legal hot water. Binance, the world’s largest crypto exchange, is being sued by the SEC under accusations of mishandling funds and lying to regulators about its business operations.
A filing to the United States Securities and Exchange Commission website revealed the feud between the government organization and Binance. The organization says that Binance mishandled billions of dollars of customer funds, and secretly sent money to a company owned by CEO Changpeng Zhao. “We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk,” Gurbir S. Grewal, Director of the SEC’s Division of Enforcement said in the filing.
It’s more bad news for the cryptocurrency business, which is still dealing with the ramifications of the FTX collapse. With the world’s biggest crypto exchange now under fire, it certainly won’t quell existing concerns around the technology. We’ll continue to follow and report on the latest developments in the Crypto business here on Shacknews.