Binance, the largest crypto exchange in the world by volume; its CEO Changpeng Zhao; and Chief Compliance Officer Samuel Lim, are being sued by the U.S. Commodity Futures and Trading Commission, according to a submit on Monday.
The company, Zhao, Lim is being sued for allegedly violating trading and derivatives rules.
The exchange has not registered with the CFTC in any capacity and has “disregarded federal laws” governing US financial markets, including laws implementing controls to prevent and detect money laundering, terrorist financing, among other aspects, the filing states.
In May 2021, Binance’s monthly revenue earned $1.14 billion from derivative transactions, up from $63 million in August 2020, the agency noted. Of that amount, about 16% of Binance’s accounts were held by US customers.
Zhao and other involved parties in Binance’s senior management have “failed to properly oversee Binance’s business and operations and indeed actively facilitated violations of U.S. law, including by assisting and instructing customers in the United States to circumvent compliance checks that Binance claimed to have implemented to prevent and detect violations of US law,” the filing added.
Binance has not responded to requests for comment from businessupdates.org at time of publication.
This is an evolving story.