The world’s largest cryptocurrency exchange Binance Holdings Ltd. and its CEO Changpeng Zhao (CZ) have received a lawsuit from the US Commodity Futures Trading Commission (CFTC) for alleged violations of derivatives trading rules. The regulator says that Binance shied away from its obligations by not properly registering, and some of the assets that are traded on the platform – Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) fall under the category of goods.
According to the lawsuit, Binance:
- offered derivatives trading to US citizens since July 2019
- informed VIP clients about the best practices for evading activity control
- concealed “true coverage and operations”
IN press release The commission called the actions of the exchange “deliberate evasion of US law”, and its statements about compliance with the rules – “fiction”.
The US Commodity Futures Trading Commission is one of several US bodies that are investigating Binance. The Internal Revenue Service and federal prosecutors are reviewing the company’s compliance with anti-money laundering regulations, and the Securities and Exchange Commission is reviewing whether Binance offered users trading in unregistered securities.
Source: Cryptocurrency
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