• The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao after the crypto exchange allegedly violated the Commodity Exchange Act and other regulations.
• CFTC head Rostin Behnam claims that Binance has had no regard for current financial laws and has been violating them for the past several years.
• The lawsuit against the exchange alleges that Binance is run by various corporate entities rather than a single governing body to help it evade regulation and committee oversights.
CFTC Sues Binance Alleging Financial Violations
The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao after the crypto exchange allegedly violated the Commodity Exchange Act and other regulations. CFTC chair Rostin Behnam claimed in a recent statement: “For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance”
The Agency Seeks Penalties & Ban
Heads of the CFTC are now seeking financial penalties and a permanent ban in the United States as Gretchen Lowe – principal deputy director and chief counsel to the CFTC’s enforcement division – commented: “The defendants’ own emails and chats reflect that Binance’s compliance efforts have been a sham and Binance deliberately chose – over and over – to place profits over following the law.“
Binance Is World’s Largest Crypto Exchange
Binance is currently considered as one of world’s largest digital currency trading platform per its daily trading volume with about 90 million users in multiple countries. In just the last few days alone, it is alleged to have overseen roughly $9 billion in digital transactions.
Lawsuit Alleges Multiple Entities To Evade Regulation
In its lawsuit against the exchange,the CFTC alleges that Binance is run by various corporate entities rather than a single governing body – designed to reportedly help it evade regulation and committee oversights – Right now, this lawsuit names three separate companies/divisions within its pages which are: Binance Holdings Ltd., Binance Holdings (IE) Ltd.,and Finance (Services) Holdings Ltd..
Price Of Bitcoin Drops After Announcement
This action has sent ripples throughout cryptocurrency space with bitcoin price immediately descending from its nine-month high of around $28K after news broke out from $27K range down to high $26K range . Ed Moya – an analyst at Oanda – commented on situation saying: “Many knew Binace had bullseye on back but this still unnerving some crypto traders….Binace success needed ensure good part cryptoverse can grow.“