- CFTC claims of Binance allegedly breaking trading and derivatives rules.
- The agency wants civil monetary penalties as well as remedial ancillary measures.
The U.S. regulatory crackdown on the crypto sector continues with the latest being Binance. The biggest cryptocurrency exchange, Binance Holdings Ltd., and its CEO, Changpeng “CZ” Zhao, have been sued by the U.S. Commodity Futures Trading Commission (CFTC) for allegedly breaking trading and derivatives rules. On Monday, the CFTC filed its complaint in Chicago’s federal court.
The Commodity Futures Trading Commission claims in court papers that Binance has derived a large amount of its stated trading volume and profits from its widespread solicitation of and access to consumers based in the United States who engage in a wide range of digital asset spot and derivative transactions involving commodities traded in interstate commerce.
Monetary Penalties and Remedial Ancillary Measures
The CFTC further claims that the Binance exchange has ignored federal rules. That are critical to the functioning of the U.S. financial system by not registering with them in any manner. Controls to prevent and identify money laundering and terrorism are required by certain of these laws.
Moreover, the Commodity Futures Trading Commission (CFTC) has filed a complaint against Zhao and other members of Binance’s top management, alleging that they failed to adequately oversee Binance’s operations and intentionally facilitated breaches of United States law. Supporting and advising U.S.-based clients to circumvent the compliance procedures Binance claimed to have in place to monitor for and prevent illegal activity is among these activities.
The regulatory authority has also asked the court to impose civil monetary penalties on Binance and connected parties, as well as remedial ancillary measures, such as “trading and registration bans, disgorgement, pre and post-judgment interest,” and any other remedy the court considers necessary and suitable.
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