Binance Reportedly Under CFTC Investigation For Insider Trading


Binance’s regulatory woes have now expanded to the US, in what could be its worst regulatory showdown until now. A recent report from Bloomberg highlighted that the US Commodity Futures Trading Commission (CFTC) is now looking into the crypto exchange on allegations of possible insider trading and market manipulation.

Earlier reports of the CFTC investigation in the first quarter were dismissed as regular interaction between the authorities and the exchange, while CZ deemed it as a FUD. It is also important to note that the crypto exchange runs an independent subsidiary in the form of Binance.US, but the authorities are reportedly investigating the global platform Binance Holdings.

The investigators are checking whether executives 0f the crypto exchange made profits based on insider information in lieu of their customers. People familiar with the matter revealed that the CFTC has reached out to potential witnesses. The first reported CFTC investigation was reportedly around derivative trading which the crypto exchange is not authorized to do in the US.

Binance Says it Has “Zero-Tolerance” Policy For Insider Trading

One of the spokespeople from the crypto exchange noted that they have a zero-tolerance policy for insider trading. The exchange also assured that if anyone was found involved in the wrongdoing, termination is the least repercussions they face. While the crypto exchange has maintained a similar stance throughout the regulatory ordeal over the past quarters, more details are awaited to get a clear picture.

Over the last two-quarters, Binance has been warned by nearly a dozen countries over non-compliance and offering services without the necessary clearance from the authorities. Most recently, Singapore which is seen as a crypto hub and hotspot for the crypto exchange added the main Binance website to the investor Alert list, while its sister exchange in Singapore continues to offer services.

The crypto exchange has taken a number of measures to ensure they are in the good books of regulators, the crypto exchange has discontinued its controversial stock token and discontinued its crypto derivative offerings across Europe, Hong Kong, and South Korea.


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