Bloomberg reveals Binance VIP clients from CFTC lawsuit
Companies provided liquidity to the exchange in exchange for favorable trading conditions
06.04.2023 - 13:35
340
2 min
0
What’s new? Bloomberg reporters have revealed Binance’s anonymous VIP clients identified as “Trading Firms A, B, and C” in a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against the exchange. According to the news agency’s sources, they are Radix Trading, Jane Street Group, and Tower Research Capital. The regulator claims that they provided liquidity to the exchange in exchange for favorable trading terms.
What else is known? The CFTC accuses the Binance global exchange of providing commodity derivatives trading services to US customers, including VIP companies, from 2019 to the present.
The VIP service involved reduced transaction fees and expedited trading services. Said firms provided liquidity to Binance, and the exchange in return received corresponding revenues from trading fees.
According to the CFTC, the strategy violated US law by helping local trading firms evade customer identification (KYC) standards. For example, Binance allowed it to circumvent restrictions on serving Americans by providing access through a virtual private network to conceal an IP address.
The Commission noted that Binance “prioritized commercial success over regulatory compliance” with US law.
On March 27, Zhao denied the CFTC’s allegations and called the lawsuit “unexpected and disappointing” because Binance had been cooperating with the agency for more than two years.
Since the lawsuit, Binance’s share of the crypto market has dropped from 70% to 54%, according to Kaiko, its lowest share since November 5, 2022.
Useful material?
Market
Due to supply shortages, the asset’s pre-market exchange rate was climbing above $1000
Dec 16, 2024
Incidents
Reports about the hacking of the exchange with calls to withdraw assets began to spread on December 13
Dec 13, 2024
Crypto regulations
Stablecoins from issuer Circle will not be affected by the changes
Dec 12, 2024
Crypto regulations
The platform will launch after meeting the preconditions of the local exchange authority
Dec 9, 2024
Market
The $1,1 billion figure was reached after the bitcoin correction
Dec 6, 2024
Crypto regulations
By early January, all open positions and loans of local users will be closed and repaid automatically
Dec 5, 2024