The Commodity Futures Trading Commission (CFTC), an independent US agency that regulates the futures and options markets in the US, has filed a lawsuit against crypto giant Binance. This is the operator of the world’s largest trading platform for digital currencies such as Bitcoin and Ether.
The Commodity Futures Trading Commission (CFTC), an independent US agency that regulates the futures and options markets in the US, has filed a lawsuit against crypto giant Binance – the operator of the world’s largest trading platform for digital currencies such as bitcoin and ether.
The crypto exchange failed to comply with U.S. financial market rules and conducted certain transactions and services without the necessary license, the CFTC said Monday. “Binance has known for years that they are breaking CFTC rules,” said bureau chief Rostin Behnam.
Trade bans and fines threaten
The US regulator wants to impose fines and a trade ban. Binance initially declined to comment. According to the lawsuit filed by the financial regulator, Binance specifically attempted to circumvent CFTC regulations. This happened, for example, when certain business activities were moved from the US.
The US authorities have been investigating for years
In addition, the CFTC accuses the crypto company of control and oversight failure. For example, Binance did not – as required – verify the identity of US customers. The lawsuit also targets Binance co-founder and CEO Changpeng Zhao and former compliance chief Samuel Lim. US authorities have been investigating the crypto exchange for years.
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