CFTC Sues Binance and Its Founder for Violating US Regulations
Commodity Futures Trading Commission (CFTC) has sued Chengpeng Zhao and Binance for allegedly violating the rules and regulations of the United States. It is disclosed that Chengpeng Zhao, the Chief Executive Officer (CEO) and the co-founder of Binance has been accused of knowingly violating the derivatives and trading rules of the crypto industry.
CFTC Claims
The recent report by Bloomberg has disclosed the ongoing suit. In the filing, the Commodity Futures Trading Commission (CFTC) of the United States accused Chengpeng Zhao also known as ‘CZ’ and Binance of state’s trading violations.
According to Commodity Futures Trading Commission, Binance has failed for registering the proper derivatives as per regulations that are considered to be the regulatory obligation. Keeping history in mind, it is important to note that the CFTC (Commodity Futures Trading Commission) of the United States has been tracking Binance since 2021 and investigating it thoroughly. Binance is well aware of the circumstances and already disclosed that the exchange is more likely to face regulatory action by the state’s watchdogs. The American-based leading cryptocurrency exchange with a trading volume of more than 8.5 billion dollars, is working on the secure side by collaborating with the US regulators.
Binance and US Watchdogs
Apart from the ongoing investigation by CFTC (Commodity Futures Trading Commission), Binance has been given tough times by other financial and regulatory authorities in the United States. Along with CFTC allegations, Binance is already going through the investigations imposed by federal prosecutors and the Internal Revenue Service (IRS) of the United States. They are examining the adherence of Binance with the rules and regulations of Anti-Money Laundering. Moreover, the SEC (Securities and Exchange Commission) of the United States is also investigating Binance that either it has authorized U.S. traders to access unregistered securities or not.
In the formal accusation of SEC against Binance, regulatory authorities have stated that Litecoin (LTC), Ethereum (ETH) and Bitcoin (BTC) are also to be considered the important commodity as these coins have shown a significant difference against the views of the US SEC as Bitcoin (BTC) is not considered to be the only security. While CIO of Coinbase stated that apparently security can also be a commodity.
