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CoinDesk Consensus

Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao sued The U.S. Commodity Futures Trading Commission (CFTC) is suspected of operating an “illegal” exchange, which compliance program officials see as a “calculated strategy of regulatory arbitrage.”

suit, release It is part of a broader crackdown on cryptocurrency companies on March 27.

According to the CRTC, Binance “offered and executed commodity derivative transactions on behalf of U.S. persons,” violating U.S. law, and the exchange’s compliance program was “ineffective.”

“Binance has known for years that they were violating CFTC rules and has been actively working to maintain the flow of funds and avoid compliance. It should be a warning to anyone in the world of digital assets that we will not tolerate willful circumvention of the law,” the lawsuit announced Monday claims.

The CFTC further alleges that Binance directed its employees and customers to circumvent compliance controls under Zhao’s direction. Former Chief Compliance Officer Samuel Lim has also been accused of “aiding” Binance’s breach.

A Binance spokesperson also said the company is making “significant investments” to ensure that U.S. users are not present on its platform, but according to CFTC Chairman Rostin Behnham, Binance executives have known for years that they violated CFTC rules and have been working to keep active US regulators out of the loop.

Binance, per report In response to claims that it will continue to “cooperate” with regulators despite the “unexpected and disappointing” lawsuit, Reuters said:

As expected, there’s been a wide range of reactions from across crypto Twitter.

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Read more: Binance calls CFTC charges ‘unexpected’, says it will work with regulators

By Jules

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