Binance and Founder Changpeng Zhao Sued by CFTC for Allegedly Violating Trading Rules


The CEO of the largest online exchange for cryptocurrency trading, Binance, said he was setting up a recovery fund to help people in the industry, while saying the sector “will go GOOD”.

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The Commodity Futures and Trading Commission filed a lawsuit against crypto exchange Binance and its co-founder, Changpeng Zhao, in federal court in Illinois on Monday, alleging that Binance actively solicited US users and overturned its own ” ineffective compliance program,” according to a court. deposit.

Zhao and his former top compliance officer, Samuel Lim, allegedly “actively cultivated lucrative and commercially significant ‘VIP’ clients, including institutional clients, located in the United States,” the complaint states.

Binance and Zhao have taken steps to deliberately obscure the location of exchange subsidiaries, the regulator said. It was part of a larger strategy that Zhao said was an effort to “keep countries clean,” the regulator alleged in the filing.

This is breaking news. Please check for updates.

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