US charges crypto giant Binance with ‘web of deception’

Crypto giant Binance has been accused of engaging in a “web of deception” after it was hit with another law suit by US financial regulators, the BBC reports.

The Securities and Exchange Commission (SEC) said the trading platform ignored the rules meant to protect investors to keep operating in the US.

It also is alleged to have improperly used customer funds.

Binance said it would defend the platform “vigorously”.

“While we take the SEC’s allegations seriously, they should not be the subject of an SEC enforcement action,” the company said, adding it had been in discussions with the regulator.

It said the lawsuit was an example of regulators’ “misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry”.

It comes as US authorities increase their scrutiny of the crypto industry, pledging to use existing laws to root out fraud and other issues, a mission that gained urgency after the dramatic collapse of Binance rival FTX last year.

The Commodity Futures Trading Commission, another US financial regulator, filed its own lawsuit against Binance in March, accusing it of operating in the country illegally.

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