Binance and CZ sued by CFTC

The CFTC has filed a lawsuit against cryptocurrency exchange Binance, alleging that it provided services to US customers without complying with federal regulations and violated federal laws.

The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against cryptocurrency exchange Binance, accusing it of providing services to US customers without complying with federal regulations and violating federal laws. According to CFTC’s allegations, Binance accepted margin from US citizens, operated a facility for futures, options, swaps, and leveraged retail commodity transactions, and conducted transactions involving digital assets. In addition, the allegations included that Binance failed to comply with legal regulations in the US and violated federal regulations, such as money laundering and terrorism financing.

CFTC claims that CZ and other Binance executives knew and/or accepted these violations, with CZ playing a direct role in Binance’s illegal activities. CFTC Vice Chairman Rostin Behnam said in a statement, “The Commission is concerned that Binance and its executives have not operated in compliance with CFTC regulations and laws. With this lawsuit, CFTC shows that non-compliant behavior will not go unpunished.”

Binance had previously stated that it did not offer cryptocurrency and derivative trading to US citizens, and entered the US market through a company called Binance.US. However, CFTC alleges that Binance provided services to US citizens without complying with US regulations.

The lawsuit brings back the discussions about the regulation of cryptocurrency markets in the US. Regulatory bodies such as CFTC are working to ensure that cryptocurrency markets operate safely and transparently.

The response of Binance CEO Changpeng Zhao to the CFTC complaint;

https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282

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