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

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 Securities and Exchange Commission (SEC) has sued Binance and its founder Changpeng Zhao for violating security rules

The SEC said that Binance has operated an illegal exchange and engaged in a "web of deception" meant to flaunt US securities rules.

Crypto exchange Binance and its chief executive officer Changpeng Zhao are being sued by US regulator the Securities and Exchange Commission.

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