The U.S. Commodity Futures Trading Commission (CFTC) has again commented on the lawsuit that was filed in the Northern District of Illinois court against the Binance crypto exchange and its CEO.
Rostin Behnam, head of the Commission, explained that Binance intentionally violated the rules set by the CFTC. This is reported Bloomberg. Among other things, Binance management deliberately allowed US citizens to use products that require a license and permission from regulators on its platform through the use of VPNs and other tools.
These are not ordinary people. They found large companies and offer futures contracts to American clients.
The head of the CFTC also added: “If you are going to offer futures contracts in the US, there must be a clear understanding that you are registered with the CFTC and comply with the law.”
According to the lawsuit filed by the CFTC, Binance has been offering derivatives trading to US citizens since July 2019, and its compliance program has proven ineffective. In addition, the exchange and its staff briefed US VIP clients on the best practices for evading activity controls.
The commission demands that fines and bans be imposed on the company and its management. Binance, this whole story can cost a pretty penny.
In an interview with CNBC at the end of March, Rostyn Benham also drew attention to the fact that the exchange had been engaged in illegal activities for a very long time: “this is a fraud extended over time – since 2019 – and a violation of the Commodity Exchange Law.” That is why the intervention of the regulator was so swift and abrupt.
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