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
234
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?
Incidents
Users were urged to withdraw funds before the site was completely shut down on November 7
May 8, 2024
Market
The outflow persists for four weeks
May 7, 2024
Market
The assets were valued at $630 000 at the time of receipt
May 6, 2024
Incidents
Roger Ver has been accused of not paying taxes
May 1, 2024
Mining
After the publication of the financial report, the company’s shares added 5%
Apr 30, 2024
Market
The commission had previously warned the developer of potential enforcement actions
Apr 29, 2024