Binance and Zhao allegedly undermined the company's own compliance, courted U.S. investors and traded against its customers using market-making companies.

Financial watchdog alleges Binance lied to regulators and syphoned investors’ funds into separate company

The US Securities and Exchange Commission on Monday sued Binance and its CEO, Changpeng Zhao. The Wall Street Journal reported that the lawsuit accuses the world's largest cryptocurrency exchange of breaking US securities rules and for operating an illegal exchange.

The SEC’s complaint also alleged that Binance and Zhao secretly control customers’ assets, allowing them to commingle and divert customer funds.

The United States district court in Washington, D.C. issued a summons for Binance CEO Changpeng Zhao on June 7, just two days after the Securities and Exchange Commission (SEC) formally sued the exchange for alleged unregistered securities operations. "A lawsuit has been filed against you," the summons read.

The U.S. Securities and Exchange Commission sued cryptocurrency exchange Binance Holdings and its CEO Changpeng Zhao for allegedly violating U.S

The Securities and Exchange Commission has sued Binance and its Founder & CEO Changpeng Zhao, accusing the exchange of violating securities law. Yahoo Finance's Jennifer Schonberger reports the details.