The CFTC has filed a case against Binance claiming it offered unregistered crypto derivatives products.
U.S. based Commodity Futures Trading Commission (CFTC) has sued Binance exchange and Changpeng Zhao, the founder of Binance claiming that the company intentionally and knowingly offered unregistered crypto derivatives products in the U.S.
According to CFTC, Binance is operating a derivative trading product that allows users to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether (USDT) and Binance USD (BUSD).
These digital assets are being referred to as commodities by CFTC and aren’t allowed to trade as per federal law.
Moreover, the suit also claims that Binance directed its employees to spoof their locations through the use of virtual private networks (VPN) under the guidance and leadership of ChangPeng Zhao (CZ).
The news has affected the crypto market. Bitcoin went down 6% and so does Binance native token BNB. CFTC Chief Counsel Gretchen Lowe called Binance’s actions “willful evasion of U.S. law”.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.
