BINANCE NEWS US CUSTOMERS SERIES
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". Binance.US has hired four additional lawyers, including former SEC enforcement official George Canellos, to defend itself in the lawsuit, Bloomberg reported on Monday.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".Today, market depth is just US$7 million,” Kaiko added. “On June 4, the day before the SEC lawsuit, market depth was US$34 million.Liquidity, or market depth, on Binance.US has plunged nearly 80% over the past week since the lawsuit as market makers and traders “fled the exchange en masse,” crypto data analysis firm Kaiko said Monday.dollar deposits to “protect customers” amid intensifying regulatory pressure. On Friday, Binance.US said it has suspended U.S.The company reiterated in the filing that its customer assets “are secure, appropriately segregated, and available to customers.”.
The exchange noted in the filing that “this has already happened” as one of its banking partners had informed the company that it would no longer service the company starting June 14.
“With a freeze of all corporate assets, banking partners would most likely cease to honor requests to transfer funds for any purpose, including customer redemptions,” Binance.US said in the Monday filing.In the Monday filing, Binance.US urged the federal judge to deny the SEC’s motion to freeze the assets of the entities that operate Binance.US after the SEC sued Binance and Zhao on June 5 for alleged unregistered offers and sales of securities.See related article: The SEC has spoken: The future of finance is not in America Fast facts clients, “would quickly grind to a halt” if a court rules in favor of a Securities and Exchange Commission’s (SEC) request last week to freeze the firm’s assets, the company said Monday in a court filing. The business of Binance.US, a cryptocurrency trading platform set up by Binance chief Changpeng Zhao to serve U.S.
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