{"id":19184,"date":"2023-03-27T16:54:00","date_gmt":"2023-03-27T16:54:00","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-sued-by-cftc-for-alleged-violations-of-trading-and-derivatives-rules-bitcoin-news\/"},"modified":"2023-03-27T16:54:00","modified_gmt":"2023-03-27T16:54:00","slug":"binance-sued-by-cftc-for-alleged-violations-of-trading-and-derivatives-rules-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-sued-by-cftc-for-alleged-violations-of-trading-and-derivatives-rules-bitcoin-news\/","title":{"rendered":"Binance Sued by CFTC for Alleged Violations of Trading and Derivatives Rules \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The world\u2019s largest crypto exchange by trade volume, Binance Holdings Ltd., has been sued by the U.S. Commodity Futures Trading Commission. Binance CEO Changpeng Zhao has been named in the lawsuit and the charges claim the crypto exchange broke several trading and derivatives rules. The lawsuit also names Binance\u2019s former chief compliance officer, Samuel Lim, for allegedly aiding and abetting Binance\u2019s violations.<\/strong><\/p>\n

CFTC Charges Binance with Willful Evasion of Federal Law; CEO Changpeng Zhao Named in Lawsuit<\/h2>\n

The CFTC has charged<\/a> Binance with willful evasion of federal law as the regulator insists Binance operated an illegal digital asset derivatives exchange. The CFTC filed the lawsuit in the U.S. District Court for the Northern District of Illinois. The regulator claims that Binance engaged in a calculated strategy of regulatory arbitrage to their commercial benefit.<\/p>\n

The crux of the charges stem from Binance allegedly offering commodity derivatives transactions to U.S. residents from 2019 until today. Under CEO Changpeng Zhao\u2019s direction, Binance\u2019s compliance program has been ineffective, the regulator stressed in a press statement.<\/p>\n

\u201cThe complaint charges that for much of the relevant period, Binance did not require its customers to provide any identity-verifying information before trading on the platform, despite the legal duty that entities like Binance functioning as futures commission merchants (FCMs) collect such information, and failed to implement basic compliance procedures designed to prevent and detect terrorist financing and money laundering,\u201d the CFTC explained on Monday.<\/p>\n

The CFTC notes that facilitating derivatives transactions without registering with the regulator is illegal. The regulator stressed that CEO Changpeng Zhao is responsible for such compliance failures. The CFTC stated:<\/p>\n

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Zhao is liable for Binance\u2019s violations based on his control over Binance and his long-running failure to act in good faith concerning Binance\u2019s misconduct.<\/p>\n<\/blockquote>\n

Following the news, the entire crypto economy lost 2.94% against the U.S. dollar with bitcoin (BTC<\/a>) sinking below the $27,000 per unit range. The CFTC is seeking civil monetary penalties, permanent trading and registration bans, and disgorgement. \u201cToday\u2019s enforcement action demonstrates that there is no location, or claimed lack of location, that will prevent the CFTC from protecting American investors,\u201d CFTC Chairman Rostin Behnam<\/a> said in a statement.<\/p>\n

\u201cI have been clear that the CFTC will continue to use all of its authority to find and stop misconduct in the volatile and risky digital asset market,\u201d Behnam added. \u201cFor years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance. This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of U.S. law,\u201d the chairman concluded.<\/p>\n

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\nTags in this story
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abetting<\/a>, aiding<\/a>, Binance<\/a>, binance lawsuit<\/a>, binance sued<\/a>, ceo<\/a>, CFTC<\/a>, CFTC sues Binance<\/a>, Changpeng Zhao<\/a>, Charges<\/a>, commercial benefit<\/a>, commodity derivatives transactions<\/a>, Compliance<\/a>, Crypto<\/a>, CZ Sued<\/a>, derivatives<\/a>, Digital Asset<\/a>, evasion<\/a>, Exchange<\/a>, federal law<\/a>, illegal<\/a>, Lawsuit<\/a>, Officer<\/a>, regulatory arbitrage<\/a>, Rostin Behnam<\/a>, rules<\/a>, Samuel Lim<\/a>, trade<\/a>, trading<\/a>, U.S. Residents<\/a>, violations<\/a>, volume<\/a><\/div>\n<\/div>\n

What do you think about the CFTC suing Binance? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Iryna Budanova \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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