7 Staggering Allegations Made by the CFTC

  • The Commodities Futures and Trading Commission sued Binance on Monday.
  • It alleges that Binance staff knew its compliance efforts were just “for show” and that it was possibly facilitating transactions by Palestinian militants and Russian criminals.
  • Here are seven shocking allegations from the CFTC’s lawsuit.

The Commodities Futures and Trading Commission’s 74-page complaint against Binance contains some staggering allegations about how the world’s largest crypto exchange tried to dodge US regulators.

The government agency sued Binance, its CEO Changpeng “CZ” Zhao, and its former chief compliance officer Samuel Lin on Monday for violating US financial laws.

In its filing, the CFTC said that the crypto giant had breached eight provisions of the Commodity Exchange Act – and requested that an Illinois court place monetary costs on the exchange, as well as ban it from registering and trading in the US. 

Binance has denied the CFTC’s allegations. A spokesperson for the exchange told Insider on Tuesday that it has hired 650 compliance staff and spent $80 million to help with transaction monitoring, “know your customer” rules, and other compliance programs over the past two years, pointing to efforts to block US residents from trading on the exchange.

Here are seven shocking claims the CFTC made in its lawsuit against the crypto exchange: