Tag: Binance

Here’s why CFTC suing Binance is a bigger deal than an SEC enforcement

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The United States Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance for violations of trading and derivatives laws. The lawsuit, filed on March 27, alleged that the global crypto exchange offered its derivatives trading services to U.S. customers without applying for a derivatives license. The lawsuit from the commodities watchdog in the U.S. took many by surprise with market observers and reporters claiming it to be a political move. Eleanor Terrett, a Fox news reporter tweeted that sources close to the CFTC suggest the commodities regulator decided to go…

Binance saw $850M withdrawal prior to CFTC indictment: Data

Right before the exchange platform Binance and its CEO Changpeng Zhao have been accused of regulatory violations by the United States Commodity Futures Trading Commission (CFTC), almost a billion dollars in crypto reportedly left the platform’s wallets.  According to the Thanefield Capital data research, a few hours before the Binance CFTC indictment, which occurred at 3 pm UTC on Monday, March 27, an unusually large amount was withdrawn across centralized exchanges. In 12 hours preceding the indictment, almost $1.5 billion left such platforms as Binance, Kraken, Coinbase and Bitfinex. More…

Binance Bitcoin balance drops by 3.4K BTC within 24 hours of CFTC lawsuit

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Soon after the United States Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for regulatory violations, the entrepreneur sought damage control measures while rejecting allegations of market manipulation. However, investors responded by pulling over 3,400 Bitcoin (BTC) from Binance within 24 hours of the announcement, anticipating market fluctuations. “Binance.com does not trade for profit or “manipulate” the market under any circumstances,” stated CZ, responding to the CFTC’s allegations. However, episodes involving crypto entrepreneurs such as FTX’s Sam Bankman-Fried and Terraform Labs’ Do Kwon have shaken investor…

Binance Experiences Significant BTC, ETH, and Stablecoin Withdrawals Following CFTC Lawsuit – Bitcoin News

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After the U.S. Commodity Futures Trading Commission sued Binance for alleged violations of trading and derivatives rules, a significant amount of cryptocurrency was withdrawn from the exchange. Data from analytics provider Nansen shows $400 million in Ethereum-based funds were withdrawn in 24 hours, and 3,655 bitcoin worth more than $99 million were withdrawn over the past day, according to Coinglass metrics. 3,655 Bitcoin Withdrawn From Binance in 24 Hours On Monday, March 27, 2023, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and CEO Changpeng Zhao (CZ), alleging the…

7 details in the CFTC lawsuit against Binance you may have missed

The surprise lawsuit from the Commodity Futures Trading Commission (CFTC) against crypto exchange Binance sent shock waves across the markets today.  In addition to allegations of market manipulation and a lack of compliance effort, the regulator has also accused the exchange of not cooperating with investigative subpoenas and obscuring the location of its executive offices. Binance has rejected many of the allegations. However, the devil is in the details when it comes to the 74-page complaint. Here are a few interesting snippets you may have missed. Tokens labeled as commodities…

Binance CEO Zhao Calls CFTC Suit an ‘Incomplete Recitation of Facts’

The lawsuit, filed in the U.S. District Court for the Northern District of Illinois, alleges that Binance operated a derivatives trading operation in the U.S., offering trades for cryptocurrencies including bitcoin (BTC), ether (ETH), litecoin (LTC), tether (USDT) and Binance USD (BUSD), which the suit referred to as commodities. The suit also alleges that the company, under Zhao’s leadership, directed its employees to spoof their locations through the use of virtual private networks. Source

Binance CEO CZ rejects allegations of market manipulation

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Binance CEO Changpeng ‘CZ’ Zhao has rejected allegations from the Commodities Futures and Trading Commission complaint, arguing the company “does not trade for profit or ‘manipulate’ the market under any circumstances.” The chief executive shared his first official response to the lawsuit in a March 28 blog post. The CEO argued that while Binance “trades” in a number of situations, this is mainly to convert them “from time-to-time” to cover expenses in fiat or other cryptocurrencies, as its revenues are in crypto. “Personally, I have two accounts at Binance: one…

Bitcoin Sinks Below $27K After CFTC Files Suit Against Binance

ETH, the second-largest cryptocurrency, fell below $1,700 before recently rebounding to $1,703, still off 3.6% from Sunday, same time. BNB, the native token of the Binance-initiated blockchain network BNB Chain, has declined by over 5% to about $310 from roughly $327 a day ago. Litecoin (LTC) was trading down nearly 4.8%. Source

CFTC calls ETH a commodity in Binance suit, highlighting the complexity of classification

The United States Commodity Futures Trading Commission (CFTC) filed suit against Binance on March 27 for violations of the Commodities Exchange Act and CFTC regulations. Those violations included transactions with Ether (ETH), according to the suit. This claim, at first glance, touched on a notable point of contention between the CFTC and the Securities and Exchange Commission (SEC).  The CFTC claimed in its suit that Binance engaged in transactions with “digital assets that are commodities including Bitcoin (BTC), Ether (ETH), and Litecoin (LTC) for persons in the United States.” That…