Binance, the world’s largest crypto exchange by volume, its CEO Changpeng Zhao and Chief Compliance Officer Samuel Lim are being sued by the U.S. Commodity Futures and Trading Commission, according to a filing on Monday.
The company, Zhao and Lim are being sued for allegedly breaking trading and derivatives rules.
The exchange has never registered with the CFTC in any capacity and has “disregarded federal laws” for U.S. financial markets, including laws that implement controls to prevent and detect money laundering and terrorism financing, among other aspects, the filing states.
By May 2021, Binance’s monthly revenue earned $1.14 billion from derivatives transactions, up from $63 million in August 2020, the agency noted. Of that amount, about 16% of Binance’s accounts were held by U.S. customers.
Zhao and other involved parties in Binance’s senior management have “failed to properly supervise Binance’s activities and, indeed, have actively facilitated violations of U.S. law, including by assisting and instructing customers located in the United States to evade the compliance controls Binance purported to implement to prevent and detect violations of U.S. law,” the filing added.
Binance has not replied to requests for comment by TechCrunch at the time of publication.
This is a developing story.
toptechtrends.com/2023/03/27/binance-and-ceo-changpeng-zhao-sued-by-cftc-over-trading-and-derivative-violations/”>Binance and CEO Changpeng Zhao sued by CFTC over trading and derivative violations by toptechtrends.com/author/jacquelyn-melinek/”>Jacquelyn Melinek originally published on toptechtrends.com/”>TechCrunch
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