Crypto shares tumble as Binance SEC lawsuit ripples through industry

The US Securities and Exchange Commission (SEC) has sued Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao for allegedly evading US regulations and misleading investors. The SEC claims that Binance.US was secretly controlled by Binance and that the exchange artificially inflated trading volumes, among other charges. The news caused major cryptocurrencies to tumble, with bitcoin down 5.45% and Binance’s cryptocurrency down 9.72%. This is the latest enforcement action against the cryptocurrency industry by the SEC, which has prompted some companies to increase compliance and expand overseas.