Binance CEO Sued by U.S. Regulator Over Sales of Unregistered Crypto Products
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A lawsuit against Binance and its founder Changpeng Zhao alleging that the company deliberately broke the law by offering unregistered crypto derivatives products in the United States. The lawsuit claimed that Binance ran a derivatives trading business in the country and provided trades for a variety of cryptocurrencies, including bitcoin, ether, litecoin, tether, and Binance USD, referred to as commodities in the suit. The lawsuit also claimed that Zhao ordered the staff members to use virtual private networks to obfuscate their whereabouts. The CFTC accuses Binance of infractions by engaging in “illegal off-exchange commodity options,” offering futures transactions, failing to register as a designated contract market or swap execution facility, managing its business poorly, failing to implement know-your-customer or anti-money laundering procedures, and having a subpar anti-evasion programme.
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