Binance, a major cryptocurrency exchange, has been accused of intentionally violating regulatory rules by the Chairman of the Commodities and Futures Trading Commission (CFTC), Rostin Benham.
Bloomberg reported that during a Princeton University event, Benham criticized Binance’s leadership and claimed that the company had knowingly broken the rules established by the CFTC with its activities.
Benham stressed that companies offering futures products in the US must register with the regulator and comply with all relevant laws. He also emphasized that Binance’s leaders are not unsophisticated individuals and are fully aware of the rules and regulations.
It is unclear how much impact Benham’s comments made at a private event will have on the CFTC’s ongoing case against Binance, its CEO Changpeng Zhao, and related parties. The CFTC originally filed charges against Binance on March 27, alleging that the exchange illegally offered trading and derivatives ordering to US-based customers. The charges also included allegations of other wrongdoings, such as failure to enforce geoblocking, knowledge of illegal customer activity, and improper use of private messages.
Binance has responded to the charges by asserting that it complies with regulations and by stating that it will cooperate with regulators.
Nevertheless, the accusations made by the CFTC are serious, and if proven to be true, they could result in significant consequences for the exchange and its leaders.
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