CFTC head accuses Binance of intentionally violating the law

Rostin Behnam said that the accusations against the exchange are not unfounded, because it employs “not unsophisticated individuals”

14.04.2023 - 11:30

643

3 min

What’s new? US Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said that crypto exchange Binance knowingly violated the rules set by his agency, reports Bloomberg. According to Behnam, Binance employs “not unsophisticated individuals” who are “starting large companies and offering futures contracts and derivatives to US customers.” He explained that registration with the CFTC is required to provide such services in the United States.

Bloomberg’s material

What is known about the conflict between the CFTC and Binance? On March 27, the Commission accused the exchange, its CEO Changpeng Zhao and former senior executive Samuel Lim of illegally providing services to make transactions in commodity derivatives for US customers and non-compliance with their identification requirements in order to maximize their own profits.

Zhao denied the allegations and called the lawsuit “unexpected and disappointing,” specifying that Binance had been working with the CFTC for more than two years.

US court summons TRON and Huobi CEO by the SEC lawsuit

Justin Sun must submit his response or petition to the court and a member of the commission within 21 days

Read further

In addition, as part of the lawsuit, the regulator called bitcoin, Ethereum, and Litecoin cryptocurrencies commodities. Behnam later confirmed the classification of ETH as a commodity.

In April, Bloomberg journalists disclosed the anonymous Binance VIPs named in the CFTC lawsuit. They are Radix Trading, Jane Street Group, and Tower Research Capital. According to the regulator, the companies provided liquidity to the exchange in exchange for favorable trading conditions.

Author: