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Securities and Exchange Commission (SEC) has sued Binance, the world’s largest crypto exchange and its CEO CZ for allegedly breaching US securities rules. In the lawsuit it is alleged that Binance mishandled customer funds, didn’t stop manipulative trading practices, provided false statements to regulators and knowingly put investors and customer at risk. Binance US was launched in 2019 and headquartered in Florida.

In response to this news price of BNB, Binance’s Native token, has fallen by 10%. The price is expected to fall further as this lawsuit will dent Binance reputation in retail investor.

SEC Char Gary Gensler said in a press release, "Through thirteen 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. [They] misled investors about their risk controls and corrupted trading volumes while actively concealing who was operating the platform".

SEC has been targeting different crypto services from time to time. It was rumored for sometime now that SEC plans to launch an investigation against Binance.

Binance has responded to the lawsuit filed by SEC. Binance said that they have corporated with SEC investigation and are disappointed that SEC has proceded to file the lawsuit.

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