Binance faces legal action from the U.S. Commodity Futures Trading Commission for failing to register with the derivatives regulator.
CFTC Files Suit Against Binance and CEO Changpeng “CZ” Zhao
The United States Commodity Futures Trading Commission (CFTC) has filed a lawsuit against cryptocurrency exchange Binance and its CEO, Changpeng “CZ” Zhao, for trading violations, according to a recent Bloomberg report. The suit, filed in the U.S. District Court for the Northern District of Illinois, alleges that Binance failed to meet its regulatory obligations by not properly registering with the derivatives regulator.
What is Binance?
Binance is one of the world’s largest cryptocurrency exchanges by trading volume, offering a wide range of services for buying, selling, and trading digital assets. Founded in 2017 by Changpeng Zhao, the platform has rapidly expanded its presence across the globe, becoming a major player in the cryptocurrency industry.
Details of the CFTC’s Accusations
The CFTC’s lawsuit against Binance and CZ follows an ongoing investigation into the exchange that began in 2021. The regulator alleges that Binance failed to properly register with the CFTC, thereby neglecting its regulatory obligations. In February, Binance acknowledged that it would likely face regulatory action in the United States and confirmed that it was already working with regulators to address the issue.
Additional Investigations into Binance
In addition to the CFTC’s lawsuit, Binance has been the subject of investigations by other U.S. regulatory agencies. The Internal Revenue Service (IRS) and federal prosecutors have been examining the exchange’s adherence to Anti-Money Laundering (AML) rules. Furthermore, the Securities and Exchange Commission (SEC) has been investigating whether Binance allowed U.S. traders to access unregistered securities.
Binance Faces Mounting Legal Challenges
The lawsuit filed by the CFTC against Binance and its CEO marks another significant legal challenge for the cryptocurrency exchange. As Binance faces scrutiny from multiple U.S. regulatory agencies, the platform’s future in the American market remains uncertain. Stay tuned to CoinNews for the latest updates on the CFTC’s lawsuit against Binance and other developments in the world of cryptocurrencies.