Binance accused of misappropriation of funds, crypto market crashed

There has been a big fall in the cryptocurrency market in the last 24 hours. The reason behind this is an allegation by the US Securities and Exchange Commission (US Securities and Exchange Commission) on the world's largest crypto exchange Binance, which said that customer funds were misappropriated by Binance Holding Limited. Have misused and lied to regulators.
The lawsuit filed by the US Security and Exchange Commission also names cryptocurrencies such as Solana, Cardano, Polygon, Cosmos, Sandbox, Decenterland, Algorand, Axi Infinity, Filecoin, and COTI, which are owned by Binance.com and Binance. trades on the US. This news saw a drop of 13 percent in Solana, 8 percent in Cardano, 6 percent in Polygon, and 10 percent in Filecoin.
The effect of these allegations on Binance was also reflected in the price of bitcoin and bitcoin fell by 6.7 percent to $25,415. Bitcoin is the world's largest cryptocurrency and according to Coin Market Cap, its market cap is around $500 billion.
The complaint filed by the US Security and Exchange Commission states that Binance and the company's CEO, Zhao, secretly controlled customers' assets, giving them the opportunity to shortchange and divert customer funds. Also, to avoid the laws, Binance has made an elaborate plan, under which it has created separate US entities.
Binance is considered to be the largest crypto exchange in the world. Binance's platform accounts for 50 percent of the total crypto trading volume. Binance has also launched its own cryptocurrency, which has a market cap of $43 billion and is the fourth-largest cryptocurrency in the world.