Binance is being sued by the US Commodity Futures and Trading Commission for operating an unregistered crypto exchange. Changpeng Zhao, CEO of Binance, and Chief Compliance Officer Samuel Lim are being sued for not registering their exchange with the commission. This could result in fines from the US government.
Several lawsuits have been filed against Zhao, Lim inc. Heading up the charge sheet are accusations of breaking trading and derivatives rules, damaging investors’ portfolios in the process. In total, six lawsuits were filed Wednesday in federal courts on behalf of investors collectively worth an estimated $2 billion. The complaints allege that between September 2010 and November 2011, Zhao et al
The exchange does not appear to have had any official affiliation with the CFTG+, or at least has never registered with them. Furthermore, their alleged disregard for federal laws relating to U.S. financial markets indicates that they may be endangering the integrity of those markets in some way. It is important for regulators to track this exchange and see if there are any further dangers that might be posed to the public.
The increasing popularity of Binance among U.S. customers may be due to the exchange’s low trading fees and broad product range. In addition, Binance offers both fiat and crypto trading facilities, making it a convenient option for Americans looking to invest in cryptocurrencies.
The U.S. government is accusing Zhao and other senior managers at Binance of failing to properly supervise the company’s activities, helping customers evade compliance controls, and actively facilitating violations of US law. This could result in criminal charges for all involved.
Binance, one of the world’s leading cryptocurrency exchanges, has recently come under scrutiny from governmental entities in China. The exchange has been banned from operating in the country and its employees have been subjected to detention, investigations and even jail time. Despite this turmoil, Binance continues to operate as one of the world’s leading exchanges – attracting new users and
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