Binance and CZ sued by CFTC over US regulatory violations
The United States Commodity Futures Trading Commission (CFTC) has filed suit against Binance and CEO Changpeng Zhao (CZ) for trading violations, according to a Bloomberg report. The suit was filed in the U.S. District Court for the Northern District of Illinois.
According to the CFTC, Binance failed to meet its regulatory obligations by not properly registering with the derivatives regulator. The cryptocurrency exchange has been the focus of a CFTC investigation since 2021. The exchange acknowledged in February that it would likely face regulatory action in the United States and was already working with regulators.
In addition to the CFTC, Binance has been under investigation by the Internal Revenue Service and federal prosecutors, who have examined the exchange's adherence to anti-money laundering rules. Meanwhile, the Securities and Exchange Commission has been investigating whether Binance allowed U.S. traders to access unregistered securities.
Binance is the biggest cryptocurrency exchange with over $8.5 billion trading volume daily.
This is a developing story, and further information will be added as it becomes available.