The company and its founder, Changpeng Zhao, have been accused of “deliberate evasion” of US law.
The US Commodity Futures Trading Commission (CFTC) has charged the world’s largest cryptocurrency exchange Binance and its CEO and founder Changpeng Zhao for illegal activities and “willful evasion” of US law. This was reported by Reuters on March 28.
It is noted that the case was filed against the backdrop of increased prosecution of crypto companies.
“For years, US attorneys and civilian investigators have prosecuted crypto firms for illegal offerings and noncompliance with regulations designed to prevent illegal activities. But recently, the pace of such government activity has increased dramatically,” the article said.
As the CFTC said in its complaint, from July 2019 to the present, Binance “offered and executed commodity derivatives transactions on behalf of US persons” in violation of the country’s laws.
According to the regulator, the company did not require customers to provide information confirming their identity before trading and “failed to implement basic compliance procedures designed to prevent and detect terrorist financing and money laundering.”
In addition, Binance has instructed US VIP customers how to bypass compliance controls.
The company’s head, a Chinese-born billionaire who moved to Canada at the age of 12, told the CFTC that he “disagrees with the characterization of many of the issues set forth in the lawsuit.”
At the same time, a representative of the company assured that it will continue to “cooperate” with the regulatory authorities. He also pointed out that Binance has made “significant investments” to ensure there are no US users on its platform.
Remember that Binance, founded in Shanghai in 2017, is at the center of the global crypto industry. According to CryptoCompare, its main exchange, Binance.com, processed about $23 trillion worth of trades last year.
It was previously reported that Binance has closed the possibility for Russian citizens to buy and sell dollars and euros through its p2p service.
The Bitcoin exchange rate has been updated the maximum since June 2022
news Correspondent.net on Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.