US Regulator Files a Lawsuit Against Binance & its CEO

Crypto exchange firms are facing a pretty tough time because of the drastic decline in digital currency in the last year. Adding to the misery is a US court filing that revealed that Binance (the world’s largest cryptocurrency exchange) along with its CEO and founder Changpeng Zhao, are facing a lawsuit from the U.S. Commodity Futures Trading Commission (CFTC) for alleged regulatory violations.

The CFTC asserts that Binance has violated U.S. laws by offering and carrying out commodities futures transactions on behalf of U.S. citizens since at least July 2019.

Lawsuit Filed by CFTC

Additionally, the CFTC said that Binance’s compliance program was weak and that, under Zhao’s direction, the business sent orders to staff members and clients to ignore compliance measures. Additionally, the CFTC said that Samuel Lim, Binance’s former chief compliance officer, encouraged and assisted the company’s violations.

In addition to announcing that Binance has been aware of its regulatory violations for years, CFTC Chairman Rostin Behnam issued a warning to the digital asset community that the CFTC will not accept willful disregard for U.S. law.

Furthermore, according to a source, Binance will be a major force in the global digital asset market in 2022, completing trades worth $23 trillion. According to Zhao’s report from the previous year, the exchange’s trade volumes hit $34 trillion in 2021.

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