Hot: Binance was sued in court
- Tram Ho
Binance has long been under the radar of US watchdogs, with many suspected of illegal securities trading or money laundering. Photo: Bloomberg
The world’s largest cryptocurrency exchange, Binance Holdings, and its CEO, Changpeng Zhao, have been sued by the US Commodity Futures Trading Commission (CFTC).
This independent commission protects American investors from manipulation, abuse, and fraud in commercial transactions.
The lawsuit was filed by the CFTC in federal court in Chicago on March 27 (US time), accusing Binance of violating regulations on trading and derivatives products.
The CFTC said Binance evaded its obligations by failing to properly register with the Commission.
Since at least 2021, the CFTC has been investigating Binance for whether the exchange failed to stop Americans from trading crypto derivatives.
Typically, CFTC regulations require exchanges to register with the agency if the platform allows Americans to trade such products.
The CFTC is one of a number of US watchdogs investigating Binance’s activities.
According to Bloomberg , the Internal Revenue Service (IRS) as well as federal prosecutors have been investigating Binance’s compliance with anti-money laundering regulations.
The US Securities and Exchange Commission (SEC) also suspects Binance of helping users trade unregistered securities.
According to Bloomberg
Source : Genk