SEC: Binance mishandled funds and violated securities laws

WASHINGTON — The world’s largest cryptocurrency exchange Binance and its founder Changpeng Zhao are accused of misusing investor funds, operating as an unregistered exchange and violating a slew of US securities laws in a lawsuit filed by the SEC. Filed in the US District Court for the District of Columbia, the Securities and Exchange Commission lawsuit on Monday lists thirteen charges against the firm — including commingling and divert customer assets to an entity Zhao owned called Sigma Chain. Binance is a Cayman Islands limited liability company founded by Zhao.