![]() The CFTC is responsible for oversight of commodities and derivatives markets, including for Bitcoin.įirms such as brokers that facilitate US customers' trading of such products are required to register with the agency. ![]() Mr Lim did not immediately respond to calls and messages.Ī spokesperson for Binance, which dominates the global digital asset sector, said the firm would continue to "collaborate" with regulators.īinance has made "significant investments" to ensure it does not have US users on its platform, the spokesperson said.ĬFTC chairman Rostin Behnam said that Binance executives knew for years "they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance". The CFTC also accused Binance's former chief compliance officer, Samuel Lim, of "aiding and abetting" Binance's violations. ![]() The CFTC said in its complaint on Monday that from at least July 2019 to the present, Binance "offered and executed commodity derivatives transactions on behalf of US persons" in violation of US laws.īinance's compliance program has been "ineffective" and the firm, under the direction of Mr Zhao, told employees and customers to circumvent compliance controls, the CFTC alleged, citing a number of practices first reported by Reuters in a series of investigations into the exchange last year. But the pace of such government activity has surged recently. The lawsuit comes amid a broader and increasingly high-profile crackdown on crypto companies in the United States.įor years, prosecutors and civil investigators have targeted crypto firms for illegal offerings and failures to comply with rules designed to prevent illicit activity. "Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterisation of many of the issues alleged in the complaint," Mr Zhao said in a statement. Mr Zhao, a billionaire widely known as "CZ" who was born in China and moved to Canada at the age of 12, called the CFTC's action "unexpected and disappointing". The CFTC sued Binance, chief executive Changpeng Zhao and former top compliance executive Samuel Lim, alleging "wilful evasion" of US law "while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit".
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