NATIONAL NEWS

SEC says crypto firm Binance mishandled funds, violated securities laws

Jun 5, 2023, 9:31 AM

FILE - Binance CEO Changpeng Zhao answers a question during a Zoom meeting interview with The Assoc...

FILE - Binance CEO Changpeng Zhao answers a question during a Zoom meeting interview with The Associated Press on Nov. 16, 2021. Binance and its founder Changpeng Zhao are accused of misusing investor funds, operating as an unregistered exchange and violating a slew of U.S. securities laws in a lawsuit filed by the SEC. Filed in the U.S. District Court for the District of Columbia, the Securities and Exchange Commission lawsuit on Monday, June 5, 2023 lists thirteen charges against the firm — including commingling and divert customer assets to an entity Zhao owned called Sigma Chain. (AP Photo, File)
Credit: ASSOCIATED PRESS

(AP Photo, File)

WASHINGTON (AP) — 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 U.S. securities laws in a lawsuit filed by the SEC.

Filed in the U.S. 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.

The lawsuit lays out the extent to which the firms owners knew of the alleged legal violations: “Binance’s CCO bluntly admitted to another Binance compliance officer in December 2018, “we are operating as a fking unlicensed securities exchange in the USA bro.”

SEC Chair Gary Gensler in a written statement that Zhao and Binance “engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”

“The public should beware of investing any of their hard-earned assets with or on these unlawful platforms,” Gensler said.

This follows other actions U.S. agencies have taken against the firm and its leadership.

In March, the Commodity Futures Trading Commission filed an enforcement action against Binance and Zhao in the U.S. District Court for the Northern District of Illinois charging them with numerous CTFC violations.

The complaint also charges Samuel Lim, Binance’s former chief compliance officer, with aiding and abetting Binance’s violations.

National News

Phoenix heat...

Associated Press

Arizona’s sweltering summer could set new record for most heat-associated deaths in big metro

PHOENIX (AP) — America’s hottest metro area is on track to set an annual record for heat-associated deaths after a sweltering summer, particularly in Phoenix. Public health officials in Maricopa County, home to Phoenix and Arizona’s most populous county, said Friday that 289 heat-associated deaths were confirmed as of Sept. 16, with another 262 deaths […]

3 hours ago

FILE - President Joe Biden addresses the 78th session of the United Nations General Assembly at Uni...

Associated Press

Biden faces foreign policy trouble spots as he aims to highlight his experience on the global stage

WASHINGTON (AP) — This probably wasn’t how President Joe Biden envisioned his big foreign policy week ending. Biden spent much of the time trying to make the case to world leaders at the U.N. General Assembly as well as to Democratic donors and voters that his decades of foreign policy experience and demonstrated moral clarity […]

4 hours ago

Danielle Wilkes is seen by a dentist during a clinic visit Thursday, Sept. 7, 2023, in Nashville, T...

Associated Press

Many states are expanding their Medicaid programs to provide dental care to their poorest residents

NASHVILLE, Tenn. (AP) — For months, Carlton Clemons endured crippling pain from a rotting wisdom tooth. He couldn’t sleep, barely ate and relied on painkillers to get by. The 67-year-old from Nashville, Tennessee, could not afford to see a dentist on the $1,300-a-month his family gets in Social Security and disability payments. So he waited […]

6 hours ago

Associated Press

Florida siblings, ages 10 and 11, stopped while driving mom’s car on freeway 200 miles from home

GAINESVILLE, Fla. (AP) — A 10-year-old Florida boy and his 11-year-old sister who were running away to California drove 200 miles (320 kilometers) in their mother’s car before they were stopped by sheriff’s deputies on an interstate highway, authorities said. The Alachua County Sheriff’s Office says deputies spotted the sedan on Interstate 75 near Gainesville […]

7 hours ago

Associated Press

New Jersey house explosion hospitalizes 5 people, police say

WEST MILFORD, N.J. (AP) — Five people were transported to hospitals after an explosion at a New Jersey home on Friday night, police said. The house in West Milford was heavily damaged by the explosion around 9 p.m., the West Milford Police Department said in a statement. A sixth person at the scene refused additional […]

9 hours ago

Associated Press

Tropical Storm Ophelia moves inland over North Carolina as coastal areas lashed with wind, rain

ANNAPOLIS, Md. (AP) — Residents in coastal North Carolina and Virginia braced for potential flooding after Tropical Storm Ophelia made landfall near a North Carolina barrier island on Saturday morning, bringing rain, damaging winds and dangerous surges of water. The storm came ashore near Emerald Isle with near-hurricane-strength winds of 70 mph (113 kph) at […]

13 hours ago

Sponsored Articles

Swedish Cyberknife...

September is Prostate Cancer Awareness Month

September is a busy month on the sports calendar and also holds a very special designation: Prostate Cancer Awareness Month.

Ziply Fiber...

Dan Miller

The truth about Gigs, Gs and other internet marketing jargon

If you’re confused by internet technologies and marketing jargon, you’re not alone. Here's how you can make an informed decision.

Education families...

Education that meets the needs of students, families

Washington Virtual Academies (WAVA) is a program of Omak School District that is a full-time online public school for students in grades K-12.

Emergency preparedness...

Emergency planning for the worst-case scenario

What would you do if you woke up in the middle of the night and heard an intruder in your kitchen? West Coast Armory North can help.

Innovative Education...

The Power of an Innovative Education

Parents and students in Washington state have the power to reimagine the K-12 educational experience through Insight School of Washington.

Medicare fraud...

If you’re on Medicare, you can help stop fraud!

Fraud costs Medicare an estimated $60 billion each year and ultimately raises the cost of health care for everyone.

SEC says crypto firm Binance mishandled funds, violated securities laws