03-29-2023 icon

Binance, CZ Indicted by the CFTC Due to Alleged US Administrative Infraction

By Lucy Adegbe
Binance debit card

US Commodity and Futures Trading Commission (CFTC) has pushed for legal actions against trading protocol Binance and its founder Changpeng “CZ” Zhao over exchange policy infringement, as briefed by Bloomberg. The legal action was registered in the United States region courthouse for North Illinois.

As stated by the CFTC, Binance erred in fulfilling its administrative responsibility by failing to correctly sign up with derivative administrators. The digital currency trading platform has been the center of attention in CFTC scrutiny for the past two years.

Binance had admitted, in the previous month, that it may be confronted with administrative action in the US and already commenced cooperation with administrators.

Also, the digital currency trading platform has been facing scrutiny from the National Revenue Service as well as national jurists, who have made moves to analyze the trading platform’s compliance with Anti-Money Laundering regulations.

In the meantime, the Securities and Exchange Commission has been looking in to ascertain if Binance permitted United Stated traders to utilize unlicensed securities.

According to the CFTC charges against Binance, amongst others, the trading protocol processed exchanges in BTC, ETH and LTC for individuals residing in the US in 2019 notwithstanding the ruling prohibiting United State users. 

The Commodity and Futures Trading Commission is filing seven counts for enforcing unlicensed future trades, offering illicit commodities choices, erring in signing up as a Futures Commission dealer, Delegated Agreement Market, negligence to manage and enforce the KYC standards and policy infringement.