Changpeng Zhao, CEO of Binance, the largest cryptocurrency exchange, called the actions of the US Commodity Futures Trading Commission (CFTC) disappointing. The company cooperated with the regulator for a long time, but still found itself involved in a lawsuit.
“The CFTC lawsuit was unexpected and disappointing as we have been partnering with the CFTC for over two years,” he said in a letter. edition of Decrypt. “However, we intend to continue to work with regulators in the US and around the world.”
Later, a detailed letter appeared on the official Binance blog describing this situation as the exchange sees it.
My Response to the CFTC Complaint | Binance Blog https://t.co/TadyotM7HN
— CZ 🔶 Binance (@cz_binance) March 27, 2023
“Over the past two years, we have made significant investments to ensure that there are no US users on our platform. Our compliance team consists of more than 750 people, many of whom have previously worked in law enforcement and regulatory agencies. To date, we have processed over 55,000 requests and helped freeze/seize over $125 million in 2022 alone and $160 million in 2023 alone.”
In addition, the company has spent more than $80 million on transaction monitoring, market surveillance, and investigative tools to support its compliance program.
According to the lawsuit filed yesterday by the CFTC, Binance has been offering derivatives trading to US citizens since July 2019, and its compliance program has proven ineffective. In addition, the exchange and its staff briefed US VIP clients on the best practices for evading activity controls.
The commission demands that fines and bans be imposed on the company and its management. Binance, this whole story can cost a pretty penny.
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