Binance CEO Reacts To The CFTC Action As Unexpected And Haunting

Changpeng Zhao, the CEO of the world’s largest crypto exchange Binance, has stated in response to a scathing lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC).

In his statement, Zhao termed the civil complaint unexpected and upsetting and expressed unhappiness. He said the lawsuit featured a short recital of the facts. The company has collaborated with U.S. officials for the last two years.

The case filed on March 27 accused Binance and Zhao of insider trading and evading KYC (know-your-customer) controls. The complaint says that the exchange traded on its platform. Zhao denies having about 300 house accounts. Binance claims do not influence the market or trade for profit.

He said the exchange was the first international (non-US) exchange to have a required KYC program and that its workers are prohibited from day trading for 90 days.

Moreover, He said that excludes U.S. users based on their location and I.P. address. The CFTC charged the exchange with encouraging U.S. traders to circumvent the restriction using VPNs (virtual private networks).

Binance Falls 5.8% In Reaction To News

$30 billion has left the market during the last 12 hours due to the market’s adverse reaction to the news. As a result, the entire market cap has dropped by 2.6% to $1.17 trillion.

The news has hit one of the cryptocurrencies, Binance’s BNB token. At the time of the press, it has fallen 5.8% to $309. However, analysts note that a minor movement such as this is not uncommon for markets, and things appear to have stabilized at current levels for the time being.

Despite the adverse market reaction, Zhao remains optimistic about the future of crypto. He noted that the exchange remains committed to spreading the freedom of money worldwide and ensuring the industry’s highest level of security and compliance.

Related reading|Binance Resumed Withdrawals After Technical Glitches

The author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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