Binance reportedly under investigation in the US for insider trading ๐จ This article is 3 years old...
Binance reportedly under investigation in the US for insider trading
Binance could be under investigation of a US financial regulator over accusations of insider trading
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Updated: Sep. 25, 2021 at 2:08 am UTC
Photo by Nik Shuliahin on Unsplash
Binance, the world’s largest cryptocurrency exchange, is under a fresh investigation by United States Commodity Futures Trading Commission (CFTC) for possible insider trading and market manipulation.
Binance under CFTC radar
A Bloomberg report whose sources were anonymous revealed that CFTC, the agency responsible for regulating the U.S derivatives markets, is examining the possibility that Binance or its staff exploited customers by taking advantage of its trading activities.
Per Bloomberg, โas part of the inquiry, U.S. officials have been looking into whether Binance or its staff profited by taking advantage of its customers โฆ The review involves Commodity Futures Trading Commission investigators, who in recent weeks have been reaching out to potential witnesses.โ
While speaking on the development, a Binance spokesperson told newsmen that the exchange had a strict observance of the ethical code. He said that Binance has “a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry.”
The spokesperson also added a staff of the exchange found guilty of the accusation would face โimmediate termination.โ
Youโll recall that we reported that the CZ-led exchange has been facing accusation of market manipulation in recent times.
Binance against regulators
Prior to this investigation, Binance had earlier been probed by the U.S authorities for alleged money laundering and tax evasions and whether it had given U.S residents access to trade derivatives.
This investigation also coincides with the period that the CZ-owned exchange is battling regulatory battles from all corners of the world, and in its effort to surmount all pressure, it has been making an effort to hire executives with verse regulatory knowledge, to expand its products.
Part of the efforts embraced by the exchange include its recent announcement of its plan to have a physical headquarter as regulators have repeatedly slammed its โdecentralizedโ claims.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.