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CFTC Chief says lawsuit against Binance was necessary due to ongoing fraud

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  • The CTFC Chief was firm in his stance towards Binance, adding that the commission had to act urgently as it involved an ongoing fraud.
  • The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ), alleging that the exchange is “illegal” and a “sham” in their compliance program.

In an interview with CNBC’s Squawk Box on Tuesday, the Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam had strong words for Binance. Host Rebecca Quick asked what would be an appropriate punishment if the lawsuit reached CEO CZ and Behnam did not mince words in his response.

Behnam, expressing confidence in the lawsuit, stated that there is “clear evidence of evasion”. The CFTC Chief was firm in his stance towards Binance, adding that the commission had to act urgently as it involved an ongoing fraud. However, Behnam did not elaborate further on the matter.

The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ), alleging that the exchange is “illegal” and a “sham” in their compliance program. Furthermore, the CFTC also accused Binance of “willful evasion” of US laws and alleges that Binance operated in the US while engaging in a “calculated strategy of regulatory arbitrage” for its own commercial benefit. Additionally, the CFTC has accused Binance’s former Chief Compliance Officer Samuel Lim of “aiding and abetting” these violations. The lawsuit is still ongoing.

In response to the lawsuit, Binance CEO Changpeng Zhao released a statement expressing his surprise and disappointment. He stated that upon review, the complaint appears to contain an incomplete set of facts that do not accurately reflect Binance’s position. “We do not agree with the characterization of many of the issues alleged in the complaint,” Zhao said.

Binance released a statement in response to the lawsuit, indicating that they will work closely with regulators and provide all relevant documents.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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