Binance

The US Commodity Futures Trading Commission (CFTC) has launched a suit against the world's biggest cryptocurrency exchange Binance, claiming the company was ...

Regarding the allegations of potential insider trading and market manipulation, Zhao said the company “does not trade for profit or ‘manipulate’ the market under any circumstances”. [response](https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282) to the CFTC claim, Zhao described it as “an incomplete recitation of facts”. He said the company “has developed best-in-class technology to ensure compliance” and blocks US users using a range of different methods. Lim’s response was to tell the user “to be careful with his flow of funds” and that “he can come back with a new account” but the existing account “has to go, it’s tainted”. Binance under Zhao’s leadership also let customers keep using the platform even if they hadn’t followed 'know your customer' obligations and allowed select US customers “to open Binance accounts under the name of newly-incorporated shell companies to evade Binance’s compliance controls”. [complaint](https://www.cftc.gov/media/8351/%20enfbinancecomplaint032723/download) against Binance, its founder Changpeng Zhao, and chief compliance officer Samuel Lim, the CFTC alleged the Binance team “actively facilitated violations of US law” including by instructing its US-based customers on how to circumvent compliance controls.

The world's biggest cryptocurrency exchange is being sued by the CFTC for operating what the regulator alleges are an "illegal" exchange and a "sham" ...

With a holding company based in the Cayman Islands, Binance has never revealed the physical location of its core exchange. Its core Binance.com exchange processed trades worth about $US23 trillion ($34.37 trillion) last year, according to data provider CryptoCompare. Mr Lim did not immediately respond to calls and messages. Bitcoin, the world's most popular cryptocurrency, fell by 4.4 per cent. 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. Binance'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

The CEO of crypto trading platform Binance has labelled civil legal charges filed by the US market regulator as 'incomplete' this morning, noting that the ...

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Complaint alleges firm grew US business despite stated intent to block US customers from platform.

The CFTC complaint claims Binance has offered and carried out derivatives transactions to US customers since 2019, despite saying that year that it would stop serving people in the US on its main platform. The best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime,” they said. It said Zhao in particular had used the Signal app, set to auto-delete, for communications purposes. Lowe said: “Defendants’ alleged wilful evasion of US law is at the core of the commission’s complaint against Binance. Gretchen Lowe, the CFTC’s chief counsel, said Binance had put profits ahead of complying with the law. The complaint also charges Binance’s former chief compliance officer, Samuel Lim, with helping Binance commit the violations.

If you live in America, you're not allowed to trade crypto derivatives. And if you're a big international platform for trading crypto derivatives, ...

The likely outcome, said Timothy Cradle, a crypto compliance and regulation expert at Blockchain Intelligence Group, will be that Binance ends up paying “hundreds of millions of dollars” in fines and will be prevented from registering a derivatives exchange in the future. (OK, most nights — we believe in a four-day work week around here.) (And like everything in this newsletter, that shouldn’t be taken as any kind of advice.) All anyone needs is a VPN and an iron stomach, because crypto derivatives are leveraged bets on wildly unstable assets. Binance has long argued that it isn’t subject to US laws because it doesn’t have a physical headquarters in America. But it’s not quite the seismic event that was FTX’s collapse, or even the Terra/Luna meltdown. Obviously, Binance took one look under the hood at FTX, now at the center of a massive federal fraud investigation, and promptly bailed.) [Silvergate](http://www.cnn.com/2023/03/08/business/silvergate-winds-down-crypto/index.html) and [Signature Bank.](http://www.cnn.com/2023/03/17/business/global-banking-crisis-explained/index.html) If you live in America, you’re not allowed to trade crypto derivatives. That’s “a terminal blow for users of their service located in the US and a significant hit to Binance’s revenue” as the suit alleges US users make up 16% of the revenue for Binance’s derivatives product. [here](https://www.cnn.com/2022/05/12/investing/luna-terra-stablecoin-explained/index.html) and [here](https://www.cnn.com/2022/11/10/business/ftx-sam-bankman-fried-crypto-collapse/index.html) but, tl;dr: Those 2022 events were, to use a technical term, holy-crap-sell-everything-call-your-dad-and-cry moments for crypto investors.) [tweeted the number 4](https://twitter.com/cz_binance/status/1640372505046052866?s=20), pointing to a part of a previous statement: “Ignore FUD, fake news, attacks, etc.” (FUD is a commonly used acronym among crypto folks that stands for “fear, uncertainty, doubt.”)

LONDON, March 28 (Reuters) - Binance founder Changpeng Zhao could never be accused of thinking small. Even back in 2017, the year he launched the business ...

A Binance spokesperson said on Monday the company would continue to "collaborate" with regulators. In response to the U.S. [under investigation](/markets/us/us-justice-dept-is-split-over-charging-binance-crypto-world-falters-sources-2022-12-12/) by the U.S. The CEO installed an tight circle of associates, many of whom had worked or studied in China, into top jobs, the Reuters report in October showed. The extent of Zhao's personal wealth is also unclear. Department of Justice for alleged criminal sanctions violations and money laundering, Reuters reported in December, with some prosecutors believing they have sufficient evidence to charge Zhao and other top executives. user base and failed to establish the money-laundering checks required of financial institutions, it alleged, citing a number of practices first reported by Reuters The exchange had strived through the year to strengthen client checks, it said, developing crypto's "best security and compliance team." And this year Zhao felt a major goal was almost within his grasp: a seat at the top table of finance. Binance also grew and concealed its U.S. Commodity Futures Trading Commission (CFTC) on Monday for operating an allegedly "illegal" exchange. he told staff in a company chat group.

Manhattan District Judge Jennifer Rearden has thrown up a roadblock for cryptocurrency exchange Binance's proposed US$1.3bn acquisition of bankrupt crypto.

We will continue to aggressively oppose the Government’s efforts and will provide further updates as they become available.— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) The CFTC has specified that Binance’s facilitation of commodity futures, options, swaps and retail commodity transactions to US customers violates the Commodity Exchange Act. But US regulator the Securities and Exchange Commission (SEC) said the deal could potentially be a violation of US securities law.

A federal judge on Monday temporarily stopped bankrupt Voyager Digital from completing a proposed $1.3 billion sale to crypto exchange Binance.

Commodity Futures Trading Commission (CFTC), which filed a lawsuit alleging that Binance.com operated an "illegal" exchange and a "sham" compliance program. Attorney's Office for the Southern District of New York and the Office of the U.S. Binance.US has agreed to pay $20 million in cash to Voyager, and take on crypto assets deposited by Voyager customers. The U.S. government more time to pursue appeals that challenge the legality of the deal. Register for free to Reuters and know the full story

In addition to the CFTC lawsuit, a U.S. District Court has halted the sale of Voyager Digital. On March 27, a federal judge temporarily halted bankrupt crypto ...

Trustee, the Department of Justice’s bankruptcy watchdog, filed appeals in March over the [approval](https://cryptopotato.com/us-doj-appeals-judges-approval-of-voyager-1b-asset-sale-to-binance-us/) of the sale. The asset hit a 2023 high of $349 on March 18 but has fallen back almost 8% over the past week as company woes deepen. Crypto markets have taken a beating following the news of the latest regulatory crackdown by Uncle Sam. [reports](https://www.bloomberg.com/news/articles/2023-03-27/voyager-digital-s-sale-to-binance-us-halted-by-district-court?sref=323RPL5z), the U.S. The regulator alleged that Binance conducted in-house trading, The U.S.

District Judge Jennifer Rearden granted the government's emergency application for a pause in the sale of Voyager, pending an appeal by the DoJ earlier this ...

[filed for Chapter 11 bankruptcy protection](https://coingeek.com/crypto-contagion-hits-voyager-digital-currency-broker-files-for-bankruptcy/) in July 2022, in the wake of the Terra/Luna collapse earlier that year. Voyager had lent hundreds of millions of dollars to Three Arrows Capital (3AC), one of Terra’s largest investors. [sued Binance’s global entity](https://coingeek.com/cftc-sues-binance-cz-for-calculated-violations-of-us-regulations/), alleging it “violated core provisions” of the Commodity Exchange Act (CEA) by allowing U.S. The former is supposedly a separate entity and allows access to a more limited range of digital assets (95 digital currencies); while the latter offers over 600 coin/tokens but is not registered in the U.S. and not permitted to facilitate trading to U.S. [CoinGeek’s Crypto Crime Cartel](https://coingeek.com/news/tag/crypto-crime-cartel/) series, which delves into the stream of groups—from [BitMEX](https://coingeek.com/news/tag/bitmex/) to [Binance](https://coingeek.com/news/tag/binance/), [Bitcoin.com](https://coingeek.com/news/tag/bitcoin-com/), [Blockstream](https://coingeek.com/news/tag/blockstream/), [ShapeShift](https://coingeek.com/news/tag/shapeshift/), [Coinbase](https://coingeek.com/news/tag/coinbase/), [Ripple](https://coingeek.com/news/tag/Ripple/), [Ethereum](https://coingeek.com/news/tag/Ethereum/), [FTX ](https://coingeek.com/news/tag/ftx/)and [Tether](https://coingeek.com/news/tag/tether/)—who have co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) players in the market. Binance.US is the registered U.S. Department of Justice (DoJ) earlier this month—an appeal which had previously been dismissed by bankruptcy Judge Michael Wiles on March 15. On March 27, District Judge Jennifer Rearden of the U.S. When [Terra’s](https://coingeek.com/news/tag/terra/) stablecoin collapsed, the domino effect caused [Three Arrows Capital (3AC)](https://coingeek.com/news/tag/three-arrows-capital/) to go under, which in turn caused Voyager to collapse. business while failing to register with authorities. [granted](https://storage.courtlistener.com/recap/gov.uscourts.nysd.595606/gov.uscourts.nysd.595606.45.0.pdf) the government’s emergency application for a pause in the sale of Voyager, pending an appeal launched by the U.S.

Binance, the largest global crypto exchange by trading volume, and Chief Executive Changpeng Zhao, aka CZ, were reportedly taken off guard by the U.S. ...

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). Department of Justice](https://www.coindesk.com/business/2022/12/12/us-prosecutors-look-to-charge-binance-and-cz-for-possible-money-laundering-violations-reuters/), [Securities and Exchange Commission](https://www.coindesk.com/policy/2023/03/03/sec-official-says-binance-us-is-operating-unregistered-securities-exchange/) and even the [Internal Revenue Service](https://www.coindesk.com/business/2021/05/13/doj-irs-investigating-crypto-exchange-binance-report/) were preparing lawsuits for a range of corporate failings. [wealthiest people in the world](https://www.forbes.com/sites/johnhyatt/2022/04/05/the-wealthiest-person-in-crypto-climbs-into-worlds-20-richest/), starts selling off assets, that could have a negative impact on crypto prices. [strict set of editorial policies](/ethics/). [ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. [had closed “gaps” that formed](https://www.wsj.com/articles/crypto-giant-binance-expects-to-pay-penalties-to-resolve-u-s-investigations-f1e3c9d2) in its compliance strategy as a result of the exchange’s rapid expansion. [file a civil lawsuit](https://storage.courtlistener.com/recap/gov.uscourts.ilnd.431767/gov.uscourts.ilnd.431767.1.0_1.pdf) against the company on Monday. government has taken a hard line against crypto – seemingly coordinating efforts to cut crypto off from the wider economy through banking restrictions and punitive lawsuits – and so it should not be a surprise they would target an exchange that has seemed to weather and grow during the bear market. Experts say this could be a fatal blow to the exchange ( The firm, which [has for years avoided](https://www.coindesk.com/markets/2020/05/08/binance-doesnt-have-a-headquarters-because-bitcoin-doesnt-says-ceo/) establishing a permanent headquarters, had been in dialogue with U.S. Binance’s executives were allegedly aware its geofencing tools were inadequate, and even had a semi-formalized (though confidential) procedure for getting “whales” around it and shielding their U.S. Commodities and Futures Trading Commission’s (CFTC) decision to