The United States Commodity Futures Trading Commission has filed a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao, for trading violations, according to a Bloomberg report. The lawsuit was filed in the US District Court for the Northern District of Illinois.
According to the CFTC, Binance failed to meet its regulatory obligations by failing to properly register with the derivatives regulator. The cryptocurrency exchange has been the subject of a CFTC investigation since 2021. The exchange acknowledged in February that it would likely face regulatory action in the United States and was already working with regulators.
In addition to the CFTC, Binance has been under investigation by the Internal Revenue Service and federal prosecutors, who have examined the exchange’s adherence to anti-money laundering regulations. Meanwhile, the Securities and Exchange Commission has been investigating whether Binance allowed US traders to access unregistered securities.
Binance is the largest cryptocurrency exchange, with a daily trading volume of more than $8.5 billion.
This is a developing story, and more information will be added as it becomes available.
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