• The U.S. Commodities and Futures Trading Commission (CFTC) has filed a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao, for allegedly violating trading rules in the country.
• Binance CEO, Changpeng Zhao, has responded to the complaint claiming that Binance has implemented a mandatory Know Your Customer (KYC) program and Anti Money Laundering rules for all customers.
• The company also claims that it has technological capability to block U.S users from accessing its international platform and has implemented additional restrictions to prevent employees from manipulating or taking profits on newly listed tokens and other products.
U.S Regulator Sues Binance
Today, the U.S. Commodities and Futures Trading Commission (CFTC) filed a lawsuit against crypto exchange Binance and its CEO, Changpeng “CZ” Zhao. The regulator is accusing the executive and the company of allegedly violating trading rules in the country.
Binance Responds To Complaint
In an official blog post, Zhao replied to the complaint and classified them as “unexpected” and “disappointing.” The executive claims that the company has worked with the U.S. regulator since 2021. Zhao said: Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! He further breakdown the charges including Binance’s capacity to enforce compliance with U.S trading rules stating that they have implemented a mandatory Know Your Customer (KYC) program and Anti Money Laundering rules for all customers as well as blocking US users from accessing their international platform which allows them to trade crypto options ans perpetual futures contracts with leverage while denying they use their platform to trade against their customers or personally benefit from trading there themselves..
The crypto exchange also claims that it has implemented additional restrictions to prevent employees from manipulating or taking profits on newly listed tokens and other products by keeping any information regarding listing launchpad, privilege data under “strict policies”.
Eating Its Own Dog Food
Binance CEO Changpeng Zhao himself denied that he benefits from trading on his own platform claiming “I eat our own dog food” meaning he stores his crypto holdings in his own exchange .
Effects Of CFTC Action
Binance is already suffering effects of this action as evidenced by trends pointing downward on daily charts for its token BNB showing investors are staying away due to uncertain future implications of this legal battle between regulators adn one of worlds biggest exchanges .