A new chapter in the dispute between Binance, the world’s largest cryptocurrency exchange, and various entities from the United States. After failing to make the FTX trade, Binance’s move caused an earthquake in the cryptocurrency world that led to a tough search. And, for its part, the US Commodity Futures Trading Commission (known as CTC) Binance has sued the company for “willful evasion” of federal law and at the same time “operating an illegal trade in digital asset derivatives.”
According to the CfTc and gathered by Ars Technica, Binance committed “numerous violations” of the CfTc’s trade act and regulations. In this way, the agency is looking for a favorable aspect, such as “civil financial sanctions” or “permanent trading and registration of han”. In addition, the entity alleges that Binance operated “through the intention of an opaque joint venture”, noting that Chanpeng Zhao (Binance founder) was in charge. Therefore, he believes that The cryptocurrency knowingly ignored the laws of the exchange to act for personal gain.
Binance disagrees with the accusation
Zhao used the official binance portal to issue a statement to give an official response to the entity. As stated in the text, the CFC’s complaint is “unexpected and shocking”. He adds that he has an “incomplete recitation of the facts,” noting that neither he nor members of Binance agree with many of the issues alleged in the complaint. Finally, he points out that, although the platform is not perfect, it wants to stand out several times “higher than what is required by current institutions”.
The reason for the conflict appears to be that US law requires that, with few exceptions, derivatives trades “be conducted on exchanges designated as CfTc.” In this way, the US business is not compatible with Binance’s way of working, since the platform is not registered with CfTc. For this reason, the management and binance are immersed in that conflict and, if they do not want to take it and these operations are prohibited, they will have to reach an agreement.
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Main image by Kanchanara (Unsplash)