Investors pull $790 million from crypto exchange Binance after SEC charges
Summary
Changpeng Zhao, billionaire and chief executive officer of Binance Holdings Ltd., speaks during a session at the Web Summit in Lisbon, Portugal, on Wednesday, Nov. 2, 2022. Following Mondays Securities and Enforcement Commission charges, it appears some of those gains have been returned. The SEC alleged that Binance had been engaging in the unregistered offer and sale of securities, that Zhao and his entities had improperly commingled investor funds with Binances funds and that the exchange subverted its own controls to allow institutional U.S. investors to use Binances international exchange, rather than the supposedly firewalled U.S. version. The Commodity Futures Trading Commission had already unveiled a similar set of charges against the crypto exchange earlier this year. The allegations of commingling and compliance failings echo the charges levelled against FTX founder Sam Bankman-Fried and his collapsed exchange.