Binance accused of breaking US financial laws

US regulators have accused the major cryptocurrency exchange Binance of violating "numerous" US financial laws, ramping up their crackdown on the crypto industry.

The Commodity Futures Trading Commission (CFTC) said the firm had failed to properly register in the US.

The lawsuit also accused the company of failing to follow "know your customer" rules intended to thwart money laundering.

Binance did not formally comment.

Founded in 2017, the company is now the world's largest centralised exchange for digital assets. It is led by billionaire Changpeng Zhao, who was also charged.

Around the time the lawsuit was announced, he posted on Twitter a message that read "4" - apparently referring followers back to advice in an earlier post urging people to "ignore .... fake news, attacks, etc."

CFTC chairman Rostin Behnam said the government filed the case to protect American investors and it should serve as a wider warning to those working in the crypto sector.

"For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance. This should be a warning that the CFTC will not tolerate wilful avoidance of US law," he said.

In the lawsuit filed in federal court in Illinois, the CFTC said the firm had been active in the US since 2019, but never properly registered with the government or complied with relevant US laws.

The firm evaded the rules "to maximize corporate profits," the CFTC said.