"How do you think CZ plans to solve the problem he has created."
The United States (US) Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and the CEO of the crypto exchange giant, Changpeng Zhao (CZ), for violating trading and derivatives regulations.
The CFTC alleges that the majority of Binance's trading volume and profits come from US customers who engage in various spot transactions and digital asset derivatives, where they involve interstate trading commodities on the company's platform.
While the financial watchdog was found to not only accuse Binance of not registering with the CFTC in capacity but also ignoring federal laws important to the integrity of the US financial market.
It is understood that compliance with the law is intended to prevent and detect money laundering including terrorism.
However, CZ and members of Binance's senior management failed to properly supervise his company's activities as they actively facilitated violations of US law.
This is because Binance officials, employees and agents have instructed US customers to use a virtual private network (VPN) to allow them to trade on the platform without submitting proof of identity and location.
The string, the regulatory body asked the court to impose a civil financial penalty, trading ban or disgorgement* on Binance and related parties.
*Repayment of ill-gotten gains imposed on the offender by the court
Following the news, the price of Binance Coin (BNB) plunged by 6.04% at $309.04 from $328 in the last 24 hours with a trading volume of $48 billion.
