The United States Commodity Futures Trading Commission (CFTC) is investigating Binance, the world’s largest cryptocurrency exchange, for possible insider trading and market manipulation.
Binance is on the CFTC’s radar.
The CFTC, which regulates the US derivatives markets, is looking into the possibility that Binance or its employees exploited customers by taking advantage of its trading activities.
“As part of the investigation, US officials are looking into whether Binance or its employees profited by exploiting its customers… Investigators from the Commodity Futures Trading Commission have been reaching out to potential witnesses in recent weeks as part of the investigation.”
While commenting on the development, a Binance spokesperson told reporters that the exchange followed the ethical code to the letter. 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,” according to him.
A member of the exchange’s staff found guilty of the accusation would be “immediately terminated,” according to the spokesperson.
You may recall that we recently reported that the CZ-led exchange has been accused of market manipulation.
Regulators versus Binance
Binance had previously been investigated by US authorities for alleged money laundering and tax evasion, as well as whether it had provided US residents with access to trade derivatives.
This investigation also comes at a time when the CZ-owned exchange is battling regulatory battles from all over the world, and in order to combat the pressure, it has been hiring executives with extensive regulatory experience in order to expand its products.
As part of its efforts, the exchange recently announced its intention to establish a physical headquarters, despite the fact that regulators have repeatedly slammed its “decentralized” claims.