Binance and CEO CZ sued by SEC.

The U.S. Securities and Exchange Commission (SEC) is taking legal action against Binance, a cryptocurrency exchange, and its CEO, Changpeng “CZ” Zhao, for allegedly violating federal securities laws. The SEC is accusing Binance of operating an unlicensed stock exchange and other violations, as reported by various news outlets.

The SEC’s lawsuit is in addition to allegations made in March of this year by the Commodity Futures Trading Commission (CFTC), another U.S. regulator, that Binance and Zhao knowingly offered unregistered cryptocurrency derivative products in the U.S., which is against federal law.

An SEC representative declined to comment on whether an investigation or enforcement action was underway via email last week. As of Monday, neither the SEC nor Binance spokespeople had responded to requests for comment.