CFTC Files Lawsuit Against Binance and CZ for Crypto Derivatives Violations
The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance and its founder, Changpeng Zhao (CZ), alleging that the company knowingly offered unregistered crypto derivatives products in the U.S. against federal law. The suit also alleges that Binance directed its employees to spoof their locations through the use of virtual private networks. The CFTC is charging Binance with violating laws around offering futures transactions, “illegal off-exchange commodity options,” failing to register as a futures commissions merchant, designated contract market or swap execution facility, poorly supervising its business, not implementing know-your-customer or anti-money laundering processes, and having a poor anti-evasion program.