Binance customer funds were commingled in account of entity controlled by CEO Zhao -SEC lawsuit

Billions of dollars in customer funds were commingled in a bank account of an entity controlled by Binance Chief Executive Changpeng Zhao, and then transferred to a third party, the U.S. Securities and Exchange Commission said on Monday. The allegation was detailed in the SEC's lawsuit against Binance, the world's largest crypto platform, and Zhao, filed on Monday.

Billions of dollars in customer funds were commingled in a bank account of an entity controlled by Binance Chief Executive Changpeng Zhao, and then transferred to a third party, the U.S. Securities and Exchange Commission said on Monday.

The allegation was detailed in the SEC's lawsuit against Binance, the world's largest crypto platform, and Zhao, filed on Monday. Binance failed to restrict U.S. customers from its platform and misled investors about its market surveillance controls, and also operated an unregistered securities exchange, the SEC alleged.

Binance did not immediately respond to a request for comment on the charges. In a tweet, Zhao said the company would issue a response once it had viewed the complaint.

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