Binance, the world’s largest cryptocurrency exchange by trading volume, is apparently presently under investigation by the United States Commodity Futures Trading Commission for possible insider trading and market manipulation (CFTC).
According to a story citing unnamed sources, the CFTC — the organization that governs the United States’ derivatives markets — is investigating whether Binance abused its consumers by profiting from their trading activities.
In response to a request for comment, a Binance spokesman informed Forkast.News that the company had a “zero-tolerance policy for insider trading” and adhered to a stringent ethical code regarding any type of action that could have a detrimental influence on its customers or industry. Binance’s security team has a long history of “investigating and holding accountable people who participate in this type of behavior, with instant termination being the least severe repercussion,” the spokesperson noted.
The CFTC’s reported investigation follows previous investigations by US authorities into Binance’s suspected money laundering and tax evasion activities, as well as whether it permitted US residents to trade futures. Additionally, it comes as the exchange is subjected to increased scrutiny by regulators worldwide, including those in Japan, Singapore, Italy, Germany, the Cayman Islands, and South Africa. As a result, the exchange has increased its hiring of compliance experts, reduced its product offerings like high leverage and stock token trading, and withdrawn from some jurisdictions, including Singapore and Ontario, Canada.
Binance is also being sued by its consumers. A number of Binance users who sustained trading losses during the exchange’s May technical downtime have banded together to sue the exchange in arbitration in an attempt to recuperate their losses.
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