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SEC sues Binance and CEO Changpeng Zhao for U.S. securities violations


The CEO of the largest online exchange for trading cryptocurrency, Binance, said he is establishing a recovery fund to help people in the industry, while saying the sector “will be fine.”Ben McShane / Contributor / Getty ImagesThe Securities and Exchange Commission filed 13 charges against Binance, the world’s largest crypto exchange, and its co-founder Changpeng Zhao, alleging that both comingled billions of dollars worth of user funds and sent them to a European company controlled by Zhao.The U.S. regulator alleged that Zhao and his exchange worked to subvert “their own controls” to allow high-net-worth U.S. investors and customers to continue trading on Binance’s unregulated international exchange.One senior executive allegedly told a compliance officer that the company was operating as a “f—ing unlicensed securities exchange in the USA bro.”The complaint alleges that Binance created Binance.US as a shield for the main company and Zhao, to “reveal, retard, and resolve” law enforcement targets and insulate Binance.Two successive Binance.US CEOs expressed deep concern over Zhao’s level of control, according to the SEC. Both testified before federal regulators: Neither were named, but its first and second chief executives were Catherine Coley and Brian Brooks.”I’m not actually the one running this company, and the mission …

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