Key Points:
- Binance CEO Changpeng Zhao (CZ) has denied the allegations of market manipulation from the CFTC.
- He affirmed that Binance is always compliant and uses various methods to block US customers.
- Binance bans employees from trading futures contracts. CZ declares that he strictly adheres to these policies and has never participated in Binance Launchpad, Monetization, margin, or futures trading.
On March 28, Binance CEO Changpeng Zhao (CZ) responded to the CFTC’s civil lawsuit on the official website. He denied any accusations of market manipulation from the legislature.
Earlier on March 27, the CFTC filed a complaint alleging that Binance traded on its platform using 300 internal accounts and failed to correctly disclose to its customers that it was trading on its platform trade on its market in terms of use.
The CFTC also accused Binance of withholding information and alleges that the exchange refused to respond to an investigative subpoena issued by the commission seeking information about its trading activities.
CZ expressed disappointment that the CFTC had filed an unexpected civil complaint even though Binance had been cooperating with the CFTC for over two years.
For allegedly aiding US customers by evading compliance controls from the CFTC, he said Binance had developed the best technology to ensure compliance. Binance blocks US customers by nationality, IP address, mobile carrier, device fingerprint, bank deposits and withdrawals, blockchain deposits and withdrawals, and bank identifiers credit.
Binance is committed to cooperating with US and global regulatory and law enforcement agencies. Binance has a compliance team of more than 750 people, many with experience in law enforcement and regulators.
To date, Binance has processed over 55,000 law enforcement requests and assisted US law enforcement agencies in freezing/seizing $160 million in funds by 2023. The exchange currently has 16 licenses. /registered worldwide, the most significant number among businesses, and it is still growing.
Binance insists that it will not “manipulate” the market under any circumstances. It makes money in cryptocurrencies and occasionally needs to convert them to fiat or other cryptocurrencies to pay fees.
Binance has subsidiaries that provide liquidity to illiquid trading pairs, and these subsidiaries are specially monitored, not allowing them to make huge profits.
In addition, CZ clarified the allegations of insider trading and market manipulation by publicly stating that he has two accounts on Binance, one for the Binance Card and one for holding crypto assets chemical.
He stores crypto on Binance and occasionally needs to convert crypto to pay for his expenses.
In addition, Binance has a “90 day no trade” policy for its employees, which means they are prohibited from selling cryptocurrencies within 90 days of purchase and vice versa. Additionally, Binance prohibits employees from trading futures contracts.
CZ declares that he strictly adheres to these policies and has never participated in Binance Launchpad, Monetization, margin, or futures trading.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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