Bloomberg finds out about the CFTC lawsuit against Binance and Changpeng Zhao

The commission’s lawsuit reports regulatory violations

27.03.2023 - 15:00

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3 min

What’s new? On March 27, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit in Chicago court against crypto exchange Binance and its CEO Changpeng Zhao. According to the news agency Bloomberg, the regulator accuses the platform of violating the rules of trading and working with derivatives. Additional information regarding the claim has not yet been released, and no comments from representatives of Binance and CFTC also have not yet been received.

News on the Bloomberg website

Crypto companies and US regulators. Earlier, the court approved the deal on the purchase of assets of the bankrupt broker Voyager by the American arm of Binance over the objections of the Securities and Exchange Commission (SEC). In this case, the Commission called Binance a “shadow bank” that issues counterfeit currency and provides services without regulatory oversight, and the senators demanded documents about the exchange, calling it a “hotbed of illegal financial activity.” Binance dismissed, but did not directly deny, the politicians’ concerns.

On March 22, the SEC accused TRON blockchain founder and Huobi crypto exchange CEO Justin Sun of selling and issuing unregistered securities, fraud, and market manipulation.

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And US crypto exchange Coinbase said it will stop paying rewards for ALGO staking starting March 29. This comes after the SEC notified Coinbase on March 22 about possible violations of securities laws, which were found including in the operation of the staking service.

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