The Commodity Futures Trading Commission (CFTC) has launched a legal action against Binance CEO Changpeng Zhao, accusing him of breaching trading regulations.
This move comes as part of the Biden administration’s push to regulate the cryptocurrency industry and protect investors. The CFTC’s lawsuit claims that Binance has permitted US residents to trade crypto derivatives without registering with the CFTC, and accuses the company, Zhao, and the former Chief Compliance Officer, of deliberately soliciting US customers and violating US laws.
The filing comes as the US government and financial watchdogs are ramping up efforts to regulate the crypto industry. This coordinated attack on Binance is seen by some as a desperate attempt to damage the cryptocurrency infrastructure and discourage investors from putting their money into crypto.
As the banking system continues to struggle, with central banks printing fiat currency at an alarming rate to prop up failing banks, investors are increasingly turning to bitcoin as a safe haven. This latest move against Binance is designed to spread fear, uncertainty, and doubt (FUD) among potential crypto investors.
Despite the legal action, Binance remains one of the most popular cryptocurrency exchanges globally, with a reported daily trading volume of over USD 40 billion.