• The US Commodity Futures Trading Commission (CFTC) has sued Binance and its founder Changpeng Zhao after the crypto exchange allegedly violated the Commodity Exchange Act and other regulations.
• CFTC chair Rostin Behnam warned that willful avoidance of US law will not be tolerated by the agency.
• After news of the lawsuit, Bitcoin’s price dropped from a nine-month high of around $28K to the high $26K range.
CFTC Sues Binance for Financial Violations
The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao after the crypto exchange allegedly violated the Commodity Exchange Act and other regulations. CFTC chair Rostin Behnam warned that willful avoidance of US law will not be tolerated by the agency.
Financial Penalties & Permanent Ban
The CFTC is seeking financial penalties and a permanent ban in the United States in response to Binance’s alleged disregard for current financial laws. Gretchen Lowe – principal deputy director and chief counsel to the CFTC’s enforcement division – said “Binance deliberately chose – over and over – to place profits over following the law”.
Binance Overseeing $9 Billion in Digital Transactions
Binance is currently believed to have about 90 million users in multiple countries, overseeing roughly $9 billion in digital transactions per day – making it one of world’s largest digital currency trading platforms. The lawsuit names three separate companies/divisions within Binance: Binance Holdings Ltd., Binance Holdings (IE) Ltd., and Finance (Services) Holdings Ltd..
Price Drop After Lawsuit Announcement
When news of the lawsuit was announced, Bitcoin’s price dropped from a nine-month high of around $28K to as low as $26K – unnerving some cryptocurrency traders who rely on Binance’s success for growth within their industry.
Many Agencies Attacking Crypto Industry
This recent legal action against Binance marks yet another attack on cryptocurrencies from government agencies worldwide, further challenging an already fragile space with regulation uncertainty – leading some investors to question their faith in cryptos altogether