• The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao for allegedly violating the Commodity Exchange Act and other regulations.
• CFTC is seeking financial penalties and a permanent ban in the US against them.
• The news sent ripples throughout the space, with the price of Bitcoin immediately descending from its nine-month high after the CFTC made their announcement.
CFTC Sues Binance
The U.S. Commodity Futures Trading Commission (CFTC) has sued Binance and its founder Changpeng Zhao for alleged violations of Commodity Exchange Act and other regulations.
Penalties Being Sought by CFTC
The agency is seeking financial penalties as well as a permanent ban in the United States against Binance due to their disregard of current financial laws and violations over the past several years.
Ripple Effect on Crypto Markets
The news sent shockwaves throughout the crypto markets, with Bitcoin’s prices dropping from its nine-month high following this announcement by the CFTC.
Binance is currently one of the most popular digital currency trading platforms, with daily trading volumes reaching over $9 billion as well as 90 million users across multiple countries. It has been alleged that Binance operates through various corporate entities to help avoid regulation and oversights by committees.
The lawsuit filed by CFTC against Binance serves as an example that willfully avoiding U.S law will not be tolerated within any part of the digital asset world, regardless of popularity or success rate among traders and investors alike.