Pressure from US regulators on the cryptocurrency industry continues unabated.
Most recently, the US Commodity Futures Trading Commission (CFTC) has sued the world’s largest cryptocurrency exchange Binance and its CEO, Changpeng Zhao.
According to Bloomberg’s report, the CFTC has filed a lawsuit against Binance and CZ for allegedly violating trading and derivatives rules.
The CFTC filed its lawsuit in federal court in Chicago today.
The following statements were included in the petition:
“The defendants (Binance and CZ) disregarded Federal law in expanding Binance’s customer base in the US because it was profitable for them.
The platform earned $63 million from derivatives transactions in August 2020, with 16% of it coming from users residing in the US.
By May 2021, that revenue had grown to $1.14 billion. This was the result of Binance’s focus on business success rather than US law.”
In the petition, it was stated that Binance deliberately did not disclose its headquarters.
The petition also states that Binance aims to evade controls such as preventing money laundering and preventing terrorist financing by not registering with the CFTC.
After this news, Bitcoin fell below $ 27,000, while Binance’s token BNB fell to $ 316.
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Binance and CZ were sued by the CFTC. Bloomberg
— Bitcoin Sistemi EN (@btcsistemi_en) March 27, 2023
