The world’s largest cryptocurrency exchange Binance and its CEO and founder Changpeng Zhao has been sued by the Commodity Futures Trading Commission (CFTC) for operating “Illegal” exchange and “fake” compliance programsaid the US regulator on Monday.
Binance, Zhao, and former The Chief Compliance Officer knowingly ignored the US Goods Act” during the engagement in calculated strategy of regulatory “Arbitrage is in their commercial interest,” the CFTC said.
From at least July 2019 to the present, Binance has offered and executed commodity derivatives transactions on On behalf of of American people,” in violation of The CFTC said: US laws in her complaint.
Binance compliance program It was “ineffective” and the company, under direction of Zhao, told employees and customers to circumvent compliance controls, the CFTC said, citing several practices first Reported by Reuters in a series of Exchange investigations last year.
CFTC also Accused Binance former Chief Compliance Officer Samuel Lim of “Aiding and Abetting” Binance Violations. Lim did not immediately return calls and messages from Reuters.
Binance, which dominates global digital asset sector, did not immediately respond to requests for comment.
For years, Binance has been known to be in breach of the CFTC rulesand actively work to maintain money flowing f avoid said Rustin Behnam, chairman of the CFTC in a permit. “this should He is warning to anyone in the digital asset world The CFTC will not tolerate intentional invalidation of United States law.”
CFTC move It comes amid a broader crackdown on Crypto companies by US authorities.
Reuters reported in December that the US Department of Justice had been investigating Binance since 2018 for possible money laundering and sanctions violations. Binance has processed at least $10 billion in payments for Reuters reports that criminals and companies are seeking to evade US sanctions on binance.
BNB cryptocurrency from Binance, the world’s fourth largest market volume, down about 4% on the news. bitcoin also dropped on the newsup to 5.1% on Today to the lowest level in 10 days of $26,541. He was last trading About $26,900.
Billionaire Zhao who child in And China moved to Canada at the age of 12, and she hasn’t moved yet directly Address the CFTC allegations.
in a tweet on On Monday afternoon, he simply wrote “4” – a reference to a precedent post Lists the “do’s and don’ts” for 2023. IV item on the list It was “ignore FUD, fake newsattacks, using abbreviated for Frequently used ‘fear, uncertainty, doubt’ in encryption in commitment to news It is seen as negative.
‘pirate ship’
was established in Shanghai in 2017, Binance sits in the heart of the global crypto industry. The underlying trades are processed on the Binance.com exchange worth About $23 trillion last year according to data provider CryptoCompare. that it trading sizes hit 34 trillion dollars in 2021, Zhao said last year.
With a holding company based in Cayman Islands Binance never disclosed location of their primary exchange. The CFTC collected a fee from the holding company with Two more units on Binance.
Binance did not ask its clients to provide any information Verify their identity before trading And “failed To implement basic compliance procedures designed To prevent and detect terrorist financing and money laundering claimed.
CFTC Complaint Explains Binance’s Efforts to Retain US Customers Even After the Company in partnership with An allegedly independent American company, launched a US stock exchange in 2019 that will serve American customers in compliance with US regulations.
Reuters reported earlier that this American company, BAM Trading, was in fact It is controlled by Zhao and Binance is operated as a de facto subsidiary. The CFTC alleged that when Chow hired Bam first CEO, described Binance as a pirate ship and explained that wished for Binance.US to be a boat offshore.”
VIP clients
Although Binance global business He said publicly at the time he was restricting US agents from trading on The Commodity Futures Trading Commission (CFTC) alleged that Binance had notified them of a commercial of their platform valuable “VIP customers” in the United States how to evade compliance controls.
Lim, chief of Compliance at that time, tell a subordinate that these customers can use virtual private networks to circumvent Binance’s IP-address compliance control, adding that “we’re not supposed to tell them that.”
Chow kept information Which reflects Binance’s US customer base secret from some of for him senior The complaint said. In October 2020, he directed Zhao Binance personnel to replace the US value for some data fields in Binance internal database with The CFTC claimed the value as UNKWN.
The complaint said that Binance has been trading on own platform through about 300″house accounts,” all directly or indirectly owned by Zhao, although the exchange did not disclose this activity in that it public terms of use or elsewhere. the house Accounts have been excluded from “Binance Insiders.” trading” policythe CFTC claimed.
A senior Binance executive told the Wall Street Journal in February for which the company expected to pay fines resolve US investigations.
Binance built by software Unfamiliar engineers with laws and rules on bribery and corruption, money laundering “Gaps,” said Patrick Hellman, chief strategy officer, economic sanctions, adding that the previous “gaps.” in that it regulatory Compliance has since been closed.
The world’s largest cryptocurrency exchange Binance and its CEO and founder Changpeng Zhao has been sued by the Commodity Futures Trading Commission (CFTC) for operating “Illegal” exchange and “fake” compliance programsaid the US regulator on Monday.
Binance, Zhao, and former The Chief Compliance Officer knowingly ignored the US Goods Act” during the engagement in calculated strategy of regulatory “Arbitrage is in their commercial interest,” the CFTC said.
From at least July 2019 to the present, Binance has offered and executed commodity derivatives transactions on On behalf of of American people,” in violation of The CFTC said: US laws in her complaint.
Binance compliance program It was “ineffective” and the company, under direction of Zhao, told employees and customers to circumvent compliance controls, the CFTC said, citing several practices first Reported by Reuters in a series of Exchange investigations last year.
CFTC also Accused Binance former Chief Compliance Officer Samuel Lim of “Aiding and Abetting” Binance Violations. Lim did not immediately return calls and messages from Reuters.
Binance, which dominates global digital asset sector, did not immediately respond to requests for comment.
For years, Binance has been known to be in breach of the CFTC rulesand actively work to maintain money flowing f avoid said Rustin Behnam, chairman of the CFTC in a permit. “this should He is warning to anyone in the digital asset world The CFTC will not tolerate intentional invalidation of United States law.”
CFTC move It comes amid a broader crackdown on Crypto companies by US authorities.
Reuters reported in December that the US Department of Justice had been investigating Binance since 2018 for possible money laundering and sanctions violations. Binance has processed at least $10 billion in payments for Reuters reports that criminals and companies are seeking to evade US sanctions on binance.
BNB cryptocurrency from Binance, the world’s fourth largest market volume, down about 4% on the news. bitcoin also dropped on the newsup to 5.1% on Today to the lowest level in 10 days of $26,541. He was last trading About $26,900.
Billionaire Zhao who child in And China moved to Canada at the age of 12, and she hasn’t moved yet directly Address the CFTC allegations.
in a tweet on On Monday afternoon, he simply wrote “4” – a reference to a precedent post Lists the “do’s and don’ts” for 2023. IV item on the list It was “ignore FUD, fake newsattacks, using abbreviated for Frequently used ‘fear, uncertainty, doubt’ in encryption in commitment to news It is seen as negative.
‘pirate ship’
was established in Shanghai in 2017, Binance sits in the heart of the global crypto industry. The underlying trades are processed on the Binance.com exchange worth About $23 trillion last year according to data provider CryptoCompare. that it trading sizes hit 34 trillion dollars in 2021, Zhao said last year.
With a holding company based in Cayman Islands Binance never disclosed location of their primary exchange. The CFTC collected a fee from the holding company with Two more units on Binance.
Binance did not ask its clients to provide any information Verify their identity before trading And “failed To implement basic compliance procedures designed To prevent and detect terrorist financing and money laundering claimed.
CFTC Complaint Explains Binance’s Efforts to Retain US Customers Even After the Company in partnership with An allegedly independent American company, launched a US stock exchange in 2019 that will serve American customers in compliance with US regulations.
Reuters reported earlier that this American company, BAM Trading, was in fact It is controlled by Zhao and Binance is operated as a de facto subsidiary. The CFTC alleged that when Chow hired Bam first CEO, described Binance as a pirate ship and explained that wished for Binance.US to be a boat offshore.”
VIP clients
Although Binance global business He said publicly at the time he was restricting US agents from trading on The Commodity Futures Trading Commission (CFTC) alleged that Binance had notified them of a commercial of their platform valuable “VIP customers” in the United States how to evade compliance controls.
Lim, chief of Compliance at that time, tell a subordinate that these customers can use virtual private networks to circumvent Binance’s IP-address compliance control, adding that “we’re not supposed to tell them that.”
Chow kept information Which reflects Binance’s US customer base secret from some of for him senior The complaint said. In October 2020, he directed Zhao Binance personnel to replace the US value for some data fields in Binance internal database with The CFTC claimed the value as UNKWN.
The complaint said that Binance has been trading on own platform through about 300″house accounts,” all directly or indirectly owned by Zhao, although the exchange did not disclose this activity in that it public terms of use or elsewhere. the house Accounts have been excluded from “Binance Insiders.” trading” policythe CFTC claimed.
A senior Binance executive told the Wall Street Journal in February for which the company expected to pay fines resolve US investigations.
Binance built by software Unfamiliar engineers with laws and rules on bribery and corruption, money laundering “Gaps,” said Patrick Hellman, chief strategy officer, economic sanctions, adding that the previous “gaps.” in that it regulatory Compliance has since been closed.