Binance and its CEO sued in the United States by the regulator CFTC
Defi and Exchanges

Binance and its CEO sued in the United States by the regulator CFTC

The futures regulator in the United States, the CFTC, has filed a complaint against Binance and its founder Changpeng Zhao.

The regulator said that Binance had not registered with its service, in federal court in Chicago.

The complaint was filed Monday in federal court in Chicago, the Commodities Futures Trading Commission (CFTC) is suing the crypto exchange and its CEO for violating trading and derivatives regulations.

A news that has therefore had a significant impact on the BTC price, which has made a fall to 26500 dollars.

Binance offered and executed commodity derivative transactions to and for U.S. persons from July 2019 to present. As alleged, Binance’s compliance program was ineffective, the article published by the regulator reads.

The complaint also accuses Samuel Lim, Binance’s former chief compliance officer, of aiding and abetting Binance’s violations.

The complaint accuses Binance Holdings Limited, Binance Holdings (IE) Limited and Binance (Services) Holdings Limited (together, Binance) of operating the centralized Binance digital asset trading platform and numerous other corporate vehicles through an intentionally opaque joint venture, with Zhao at the helm as Binance’s owner and chief executive officer.”

For its part, Binance has stated in the past that it expects to have to pay hefty fines to US regulators, so this CFTC complaint will come as no surprise to the crypto trading platform, which is also bearing the brunt of a massive crackdown by US regulators against the crypto sector as a whole.

So now it’s Binance’s turn to face the US regulators in court, a trial that could be long and costly like the one of Ripple (XRP) which has been facing the SEC in court for two years already.

The price of the exchange’s native token, Binance Coin (BNB), lost nearly 4% to around $315 following the news.

Article written by:

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.

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