![]() Zhao issued a response on the Binance website, saying the CFTC complaint is "unexpected and disappointing. Binance trading totaled $23 trillion in 2022, Reuters wrote, citing data provider CryptoCompare. Zhao reportedly said last year that Binance processed $34 trillion worth of trades in 2021. The CFTC charged the holding company and two other Binance units." Advertisementīinance finds complaint “unexpected and disappointing” ![]() This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of US law."Ī Reuters article said Binance was founded in Shanghai in 2017 but operates with "a holding company based in the Cayman Islands," and "has never revealed the location of its core exchange. The CFTC alleges that the defendants operated the trading platform "through an intentionally opaque common enterprise, with Zhao at the helm as Binance's owner and chief executive officer." The agency said the defendants "chose to knowingly disregard applicable provisions of the CEA while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit." Samuel Lim, Binance's former chief compliance officer, was charged with aiding and abetting the violations.ĬFTC Chairman Rostin Behnam said, "For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance. In a press release announcing the civil enforcement action, the agency said its litigation "seeks disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the CEA and CFTC regulations." The US Commodity Futures Trading Commission (CFTC) yesterday sued Binance, the world's largest cryptocurrency exchange, saying the company and its founder, Changpeng Zhao, are charged with "willful evasion of federal law and operating an illegal digital asset derivatives exchange."īinance committed "numerous violations of the Commodity Exchange Act and CFTC regulations," the agency said. Getty Images | Ben McShane reader comments 102 with
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