US SEC files charges against Binance, Coinbase

Washington: US Securities and Exchange Commission (SEC) has taken legal action against two major players, Binance and Coinbase.

SEC has filed a total of 13 charges against Binance Holdings, the operator of the world's largest crypto asset trading platform, Binance.com, as well as its US-based affiliate BAM Trading Services, which together operate Binance.US.

The charges also target Binance's founder, Changpeng Zhao.

The allegations include operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls, and oversight of Binance.

US platform, and engaging in the unregistered offer and sale of securities.

This action follows a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance and Changpeng Zhao earlier this year in March.

SEC Chair Gary Gensler comments, "Through 13 charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law."

Gensler further accuses them of misleading investors about risk controls, manipulating trading volumes, and evading US securities laws.

Binance has expressed disappointment with the SEC's move and vows to defend its platform.

In a blog post, the company states that it has cooperated with the SEC's investigations and emphasizes its commitment to cooperating with regulators and policymakers globally.