Just over two months after the US financial products regulatory body’s complaint, the world’s largest cryptocurrency platform, Binance, is being sued again, as is its founder Changpeng Zhao.

This time, the US Securities and Exchange Commission (SEC) is accusing it of breaking and violating current regulations as it allowed US residents to use its platform while the company was not registered with state authorities.

The lawsuit was filed in federal court in Washington.

Prior to this lawsuit, the US financial products regulatory body, the CFTC, had filed a lawsuit on similar grounds.

Rostin Behnam, chairman of the CFTC, then indicated that the charges against Binance are part of a campaign to “detect and stop misconduct in the volatile and high-risk digital asset market.”

The lawsuit in that case was filed in a federal court in the state of Illinois (northern).

The Securities and Exchange Commission is accusing Binance of 13 counts of blatantly ignoring U.S. stock exchange laws and making billions of dollars in exchange for exposing its clients’ assets to “significant risk”.

“Zhao and the Binance entities were not only aware of the rules, but consciously chose to circumvent them and endanger their customers and investors, all in an effort to maximize their own profits,” said Binance- chairman Gary in a statement. Gensler.

According to Gensler, the Chinese-born billionaire and Binance created a “broad web of deceit, conflict of interest, concealment and calculated evasion of the law”.

Via Twitter, Zhao said the company would provide a response to the lawsuit once it had time to study it, and said it has taken steps to ensure all systems remain stable, including withdrawals and deposits.

Binance was founded in China in 2017 and is headquartered in the Cayman Islands. Zhao was ranked 19th among the world’s richest people of 2022 on the Forbes list.

Due to the situation, Binance Coin (BNB), a cryptocurrency linked to the platform of the same name and the fourth global digital currency, lost 5% in less than an hour.

“Our team is working to ensure that our systems are stable, including withdrawals and deposits,” Changpeng Zhao said on Twitter. “We will respond (to the allegation) once we see the document,” he added.