In its latest fight conflict against web3, the SEC has filed a lawsuit against Binance and Changpeng Zhao (CZ) alleging that the company has skirted regulations with its US branch acting as a regulatory shield against the international crypto exchange and allegations that the company has been mixing customer funds with investment funds in a separate European company also operated by CZ. 

The lawsuit comes when Gary Gensler is under intense scrutiny by conservatives who see him interfering with cryptocurrencies without providing clear or transparent reasoning. However, there is a big difference between the Wells Notice that Coinbase received earlier this year and the much more legitimate claims that Binance is trying to avoid US law enforcement.