CFTC sues Binance, CZ, for US regulatory violations

According to Bloomberg, the United States Commodities Futures Trading Commission has reportedly taken legal action against the cryptocurrency exchange Binance and its Chief Executive Officer Changpeng “CZ” Zhao for trading violations.

This action was taken in response to the commission’s investigation into the company. This case has been assigned to the United States District Court for the Northern District of Illinois, which is the court that has been granted the authority to hear it.

According to the Commodities Futures Trading Commission (CFTC), Binance did not comply with its regulatory obligations by registering with the derivatives regulator. As part of their investigation that began in 2021, the CFTC has been investigating the bitcoin exchange since 2021.

In February, the exchange came clean about the fact that it was likely going to be subject to regulatory action in the United States and stated that it was already working with regulators. The statement came after the exchange, which admitted that it was likely going to be subject to regulatory action in the United States.

Investigations have been conducted by not just the CFTC but also the Federal Revenue Agency and federal prosecutors to determine whether or not Binance complies with anti-money laundering laws.

The purpose of these investigations is to determine whether or not Binance violates the law. Now, the Securities and Exchange Commission is looking into whether or not Binance gave investors in the United States access to unregistered securities.

This investigation is being conducted as part of a larger probe into whether or not Binance broke any laws.

Binance has established itself as the most prominent cryptocurrency exchange with a daily trading volume of over $8.5 billion, making it the market leader.