US regulator fines Binance founder for violating trade rules
A senior US market regulator charged cryptocurrency behemoth Binance and its creator, Changpeng Zhao, with various crimes on Monday, in yet latest step by Washington against the once-exciting sector.
According to AFP, the Commodity Futures Trading Commission's chairman, Rostin Behnam, stated that the allegations against Binance, the world's largest crypto exchange, were part of a strategy to "find and stop misconduct in the volatile and risky digital asset market."
The claims targeted Zhao, widely known as CZ on Twitter, and three organizations that comprise his crypto empire.
Zhao was frequently portrayed as the archrival of FTX founder Sam Bankman-Fried, who was detained in the Bahamas in December and faces a US criminal prosecution later this year.
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"Binance knew they were breaking CFTC rules for years, actively working to both keep the money flowing and avoid compliance," Behnam said in a statement.
"This should serve as a warning to anyone involved in the digital asset world that the CFTC will not tolerate willful disregard for US law," he added.
The charge sheet accuses Binance of failing to meet the standards expected of a derivatives market company.
"Binance's compliance program has been ineffective since July 2019," according to the statement.
Binance staff and consumers were directed by Zhao to circumvent compliance procedures "to maximize corporate profits," the regulator claimed.
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