SEC Lawsuits Against Cryptocurrency Companies Raise Questions About Industry's Future

Two recent lawsuits filed by the U.S. Securities and Exchange Commission against the world’s biggest cryptocurrency exchanges have reopened tensions between the government and a volatile industry that has been marred by scandals and market meltdowns

WASHINGTON (AP) — First came the crypto winter, then the alleged fraud wrought by FTX founder Sam Bankman-Fried, and now the lawsuits. 

The U.S. Securities and Exchange Commission filed lawsuits last week against the world's biggest cryptocurrency exchanges, Binance and Coinbase, deepening tensions between the government and a volatile industry that has been marred by scandals and market meltdowns.

Binance and Coinbase are both alleged to have violated the law by operating as securities exchanges without registering their businesses with the SEC. Binance faces additional charges, along with its CEO, of diverting customer funds to a separate business, among other accusations. Most recently, the SEC asked a federal judge to freeze the assets of Binance’s U.S. platform.