The CFTC lawsuit details how the company allegedly offered unregistered commodity derivatives to US clients.
The CFTC has sued Binance, the world’s largest cryptocurrency exchange by volume, and its CEO Changpeng Zhao, alleging that the company offered to sell unregistered derivatives to customers in the United States.
suit He alleges numerous wrongdoings against CFTC regulations, including “offering, entering into, confirming the execution of, or otherwise dealing in over-the-counter commodity futures transactions,” “operating a facility to trade or process swaps without registering them as a swap execution facility (“SEF”). “) or designated as a contracting market,” “failing to diligently supervise Binance’s activities related to conduct that subject Binance to commission registration requirements,” and “failing to implement an effective customer information program and otherwise comply with applicable provisions of the Bank Secrecy Act.”
These breaches were concealed, among other things, within the company’s operations, which the lawsuit alleges were “designed to conceal ownership, control, and location of the Binance platform.”
Otherwise, Binance “is likely to continue to engage in the acts and practices alleged in this complaint and similar acts and practices,” according to the lawsuit.
The lawsuit included Signal’s alleged internal messages indicating that the company was aware of its wrongdoings and encouraged practices within the platform.
2023 brought significant regulatory challenges for Binance; In January, the United States The senators launched an investigation In an alleged criminal activity in which the platform was involved. In addition, the DOJ confirmed that it was divided over its decision to charge Binance and its executives, with reports that DOJ officials discussed potential plea bargains with Binance attorneys.
However, it appears that it was only a matter of time before Binance was uploaded by some regulatory entity. The Securities and Exchange Commission recently stated its position that cryptocurrencies outside of bitcoin are securities, with Warning leaflet A recently published description states that “those providing crypto asset investments or services may not comply with applicable law, including federal securities laws.” Somewhat timely, today’s SEC Chairman Gary Gensler repeat that “investors in the cryptocurrency markets are putting their assets at risk in a highly speculative asset class.”
Previously, Gensler comment That “everything other than Bitcoin is a security,” at least assuages fears that Bitcoin might be funneled into upcoming regulation.