Ovunc Kutlu
27 March 2023•Update: 27 March 2023
ISTANBUL
The US' Commodity Futures Trading Commission (CFTC) on Monday charged the cryptocurrency exchange platform Binance with "willful evasion of federal law" and "operating an illegal digital asset derivatives exchange."
CFTC said in a statement it filed a civil enforcement action in the US District Court for the Northern District of Illinois, charging its CEO Changpeng Zhao and three entities that operate the Binance platform.
The regulator said the complaint also charges Samuel Lim, Binance’s former chief compliance officer, with aiding and abetting the company's violations.
"The defendants allegedly chose to knowingly disregard applicable provisions of the CEA (Commodity Exchange Act) while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit," the statement said.
The agency said it seeks disgorgement, civil monetary penalties, permanent trading, registration bans, and a permanent injunction against further violations of the CEA and CFTC regulations.
"For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance," CFTC Chairman Rostin Behnam said in the statement.
After the CFTC's move, Binance's own coin BNB saw its price falling to $306.5 at 1.55 p.m. EDT, while it was trading around $309.1 at 2.45 p.m. EDT for more than a 6% daily loss.
