The United States Commodity Futures and Trading Commission (CFTC) sued crypto exchange giant Binance over the weekend, causing a number of cryptos to fall off their previous highs from this past month. The price of bitcoin fell by 3% to $26,955, with Ethereum also falling by a similar percentage. The CFTC’s lawsuit was filed on Monday in Chicago for allegedly violating trading rules, as the lawsuit states that Binance knowingly offered unregistered crypto derivatives products in the US against federal law. Allegedly, Binance had offered trading for bitcoin, ethereum, Binance USD and more, with the suit referring to them as commodities.
In detail, the court filing entails that Binance had violated “eight provisions of a commodities trading law ‘designed to prevent and detect money laundering and terrorism financing”. The exchange is also accused of hiding its true reach and operations, as employees hid their locations through the use of VPNs, and have also been accused of poorly supervising their services and the customers they were making it available to, as their KYC and money laundering processes also came under fire. We will see how this story will develop in the next few weeks.
