CFTC Sues Binance: Crypto Exchange Allegedly Violates Financial Laws
• The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao for allegedly violating the Commodity Exchange Act and other regulations.
• CFTC heads are now seeking financial penalties and a permanent ban in the United States against Binance.
• The announcement of the lawsuit sent ripples throughout the space, with bitcoin prices dipping from its nine-month high of around $28K to the high $26K range.
CFTC Sues Binance
The U.S. Commodity Futures Trading Commission (CFTC) is taking legal action against crypto exchange Binance and its founder Changpeng Zhao for alleged violations of the Commodity Exchange Act and other regulations. CFTC heads are now demanding financial penalties and a permanent ban in the United States as punishment for these violations.
Binance’s Alleged Violations
According to CFTC chair Rostin Behnam, Binance knew they were violating CFTC rules but actively chose to keep money flowing while avoiding compliance with U.S law instead of abiding by it – an act which should be seen as a warning to anyone involved in digital assets that similar actions will not be tolerated by the agency. Gretchen Lowe, principal deputy director and chief counsel at the enforcement division of CFTC, added that internal emails and chats revealed that Binance made deliberate choices to prioritize profits over following proper laws – something which has been going on for years despite their awareness of such actions being illegal.
Binance is one of world’s largest digital currency trading platforms with daily trading volume reaching up to $9 billion in recent days alone, alongside having about 90 million users across multiple countries worldwide. This lawsuit names three separate companies/divisions within Binance as defendants: Binance Holdings Ltd., Finance (Services) Holdings Ltd., and Binance Holdings (IE) Ltd..
The announcement of this lawsuit caused ripples throughout the crypto space with Bitcoin prices dropping from its nine-month high of around $28K all the way down to around $26K shortly after it was made public – leaving many investors feeling uncertain regarding future developments involving both Biance itself as well as digital asset markets in general due to this news coming right after BTC had broken out into new highs for 2021 earlier this week .
Overall, it appears that various regulatory agencies have become increasingly vigilant when it comes to monitoring cryptocurrency activities – particularly those involving major exchanges like Biance – indicating that even more legal actions may follow in order to ensure compliance with existing laws surrounding crypto assets moving forward for all parties involved in them no matter how large or small they may be .