Binance's Misrepresentation of Trading Controls and Oversight

The SEC alleges that Binance and its CEO, CZ, had control of clients assets which allowed funds to be merged or rerouted with billions of dollars being sent to a crypto asset trading firm. Assets were also allegedly diverted to a separate entity owned and controlled by Zhao called Sigma Chain which the SEC says engaged in manipulative trading. From this account, Sigma Chain spent $11 million to buy a yacht. As I mentioned earlier, the SEC is coming after these exchanges for violating the Securities Exchange Act of 1934 which regulates the trading of securities so they're not being accused of illegally selling securities but rather of operating a trading venue for securities without registering as a securities exchange.