Binance Sued by the CFTC

in crypto •  2 years ago 

Binance Sued by the CFTC

The CFTC filed a 74-page complaint against Binance today at the U.S. District Court for the Northern District of Illinois. It claims the company is engaging in jurisdictional arbitrage in order to offer commodities trading services to its U.S. customers.

“Today’s enforcement action demonstrates that there is no location, or claimed lack of location, that will prevent the CFTC from protecting American investors,” said CFTC Chairman Rostin Behnam in a press release. “For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance.”

Binance sees increase in withdrawals after CFTC sues the exchange

Since the lawsuit was announced, $169 million was withdrawn from the exchange against just $46 million of deposits, a net outflow of $123 million.

Will there be any platforms left standing? Well, yes, the USA is far too loud in English-language news. The only thing we are really learning is how the USA is being accelerated into a controlled totalitarian state. This is, indeed, a protection racket, but it isn't to protect the public.

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  ·  2 years ago  ·  

While Binance has maintained offices in numerous
locations, including Singapore, Malta, Dubai, and Tokyo at various times during the Relevant
Period, Binance intentionally does not disclose the location of its executive offices. Instead,
Zhao has stated that Binance’s headquarters is wherever he is located at any point in time,
reflecting a deliberate approach to attempt to avoid regulation.

  ·  2 years ago  ·  

Looks bad

“On the one hand, Binance.US offered fewer products than Binance and has customers who identify as U.S. and Binance.US recognizes as U.S. customers. On the other hand, if the CFTC can prove to a judge that Binance.US helped Binance siphon U.S. customers who wanted to do more exotic products and use VPNs to hide their U.S. identity, then Binance.US may not be viable going forward.”

Binance vs. CFTC: Latest court battle could alter crypto landscape in US

  ·  2 years ago  ·  

How US Regulators Are Choking Crypto in Wake of Banking Collapses

On March 27, Haun Ventures founder and Coinbase board member Katie Haun wrote an article about how U.S. financial regulators are intentionally stifling the crypto industry.

https://www.wsj.com/articles/us-regulators-choke-point-for-crypto-blockchain-occ-framework-backdoor-fdic-banks-warning-8b426152 (paywalled)

  ·  2 years ago  ·  

destroy and plunder

lmfao - just click it to see the "potentially sensitive content" aka unpalatable truths

  ·  2 years ago  ·  

"financial stability" is bankster-speak for "monetary control".

What they really really deeply hate is that crypto has exposed a parallel system to the central banksters.

One thing to remember is that even the scams are reported in a scammy way. eg, some shitcoin rakes in $1m, valuing it at $500m, they rugpull and somehow "lose" $500m of "value" when nobody has actually lost that - there was only ever $1m input.

  ·  2 years ago  ·  

Binance US could be shut down even with CFTC settlement

The CFTC says Binance traded on its own platform with 300 accounts which were all linked to CZ, and with US-based trading firms Merit Peak and Sigma Chain. CZ also traded with his own two personal accounts while Merit Peak entered into OTC transactions with Binance’s clients. Sigma Chain traded derivatives. Binance never disclosed it was trading its own markets against its own clients.

Banksters do the same, but have the wit to keep such things in separate companies and/or in the shadows.

  ·  2 years ago  ·  

CZ’s Response to the CFTC Complaint
https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282

To date, we have handled 55,000+ LE requests, and assisted US LE freeze/seize more than $125 million in funds in 2022 alone and $160 million in 2023 so far.

But they want MORE!

I still suspect that some people really hate CZ for side-stepping the FTX fuckup.

  ·  2 years ago  ·