Did Binance violate CFTC rules?

Photographer: Zed Jameson/Bloomberg The CFTC in March alleged that Binance and CEO Zhao, also known as CZ, routinely broke US derivatives rules as the firm grew to be the world’s largest digital-asset trading platform. Binance should have registered with the agency years ago and continues to violate the CFTC’s rules, the regulator said at the time.

How much is Binance worth?

Founded in Shanghai in 2017, Binance sits at the heart of the global crypto industry. Its core Binance.com exchange processed trades worth about $23 trillion last year, according to data provider CryptoCompare. Trading volumes hit $34 trillion in 2021, Zhao said last year.

Is Binance a 'VIP'?

Binance operates a separate entity for U.S. customers known as Binance.US, although the CFTC is alleging that it knowingly offered its core services to U.S. clients as well, including lucrative “VIP” customers that included institutional firms. The CFTC is not the first U.S. agency to target Binance.

Who is suing Binance?

Binance, its CEO Changpeng Zhao, and its former compliance officer, Samuel Lim, are all named in the complaint. CNBC previously reported on how Binance engages in similar activity to solicit mainland Chinese users.