Binance and its founder sued in the US by the CFTC

Changpeng-Zhao-Binance

Changpeng Zhao, CEO and founder of Binance – RoyalsBlue.com ©.

The U.S. futures regulator, the CFTChas filed a complaint against Binance and its founder Changpeng Zhao.

On Monday, the Commodity Futures Trading Commission (CFTC) launched a lawsuit against cryptocurrency exchange platform Binance, its CEO-founder Changpeng Zhao and its former compliance director Samuel Lim for violating derivatives rules, reports Bloomberg.

The regulator filed the complaint, which states. Binance had not registered with his department, in federal court in Chicago.

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The latter alleged, among other things, that Binance was actively soliciting the American users and that the platform had taken steps to deliberately hide the location of its affiliates.

The numero 1 global crypto exchange by volume was under investigation by the CFTC since 2021. The US regulator SEC is also reportedly investigating Binance.

The defendants’ own emails and chats reflect that Binance’s compliance efforts were a sham and that Binance deliberately chose – repeatedly – to profit rather than follow the law,” said Gretchen Lowe, senior deputy director and chief counsel of the CFTC’s enforcement division, in a statement.

Specifically, Binance violated the Commodity Exchange Act rules and CFTC regulations, according to the announcement. “Binance offered and executed commodity derivatives transactions to and for U.S. persons from July 2019 to the present. As alleged, Binance’s compliance program was ineffective,” the article published by the regulator reads.

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The stock market’s native token price, Binance Coin (BNB)), lost nearly 4 percent to about $315 on the news.

Article updated on 03/27/2023 at 5:52 pm: Added CFTC commentary and details at the end of the article following the release.

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