The US Futures Trading Commission has filed a lawsuit against Binance, the largest cryptocurrency exchange, with a series of serious allegations. Prior to this, the country’s government has already announced plans to tighten control over cryptocurrencies on several occasions.
On March 27, the US Futures Trading Commission (CFTC) filed a surprise lawsuit against cryptocurrency exchange Binance, accusing it of manipulating the markets, refusing to cooperate with authorities, and encouraging illegal activities. Company representatives have already denied these and many other accusations.
The CTFC also accuses Binance and exchange staff of knowing that the platform was engaged in “illegal activities” but doing nothing, citing a 2019 case as an example. Toda, according to the regulator, the head of Binance’s legal department received information about the transactions of the terrorist organization Hamas, but turned a blind eye to this, since the amounts were insignificant.
According to the CFTC, Binance encourages clients to use a VPN to access the platform in countries where the exchange has not received a license. In addition, the regulator relies on cryptocurrency exchange VIP clients to have the opportunity to be notified of any law enforcement requests regarding them, which, in theory, can help lawbreakers hide. of prosecution.
As evidence, the Futures Trading Commission cites, among other things, the personal correspondence of Binance CEO Changpeng Zhao (CZ); It is not specified how the businessman’s messages were obtained. It is noted that in order to communicate with the top managers of the crypto exchange, the head of the company uses Signal messenger with the instant letter deletion function enabled.
Changpeng Zhao has already refuted the commission’s claims on the official Binance blog. According to him, many of the facts in the lawsuit were misrepresented and the clause about refusing to cooperate with the US authorities was completely fabricated. The Binance CEO claims that the crypto exchange has been in active dialogue with the CFTC for more than two years to comply with the law. Also, US citizens cannot register on Binance, which is controlled by mandatory KYC (Identity Verification) procedures.
The 74-page CFTC complaint contains a number of interesting points, including the classification of Bitcoin, ETH, LTC, USDT, and BUSD as commodities that, according to the regulator, Binance transactions sparked the most discussion in network. This directly contradicts recent statements by the head of the US Securities and Exchange Commission, Gary Gensler, who claimed that all crypto assets except Bitcoin are securities. According to Cointelegraph experts, the standoff between the two US government departments could have dire consequences for the entire cryptocurrency industry.
At the moment, all the main cryptocurrencies have already reacted to the demand by falling several percent.
Author:
Grigory Shcheglov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
