U.S. officials are reportedly investigating crypto exchange Binance. On Friday, Bloomberg reported that the company was investigating possible trading using confidential information and market manipulation.
CFTC investigations into insider dealing
U.S. officials have examined whether exchange or its employees have benefited from taking advantage of their customers. One of these people said that the investigators commissioned for trading with Commodity Futures (CFTC) in recent weeks are reaching out to potential witnesses.
“At Binance, we have the principle of zero tolerance for insider trading. We have a strict code of ethics applicable to any type of behavior that could have a negative impact on our customers or the industry, ” a spokesman for Binance said in a statement.
They also added that the Binance security team has long-standing guidelines for investigating illegal activities. A CFTC spokeswoman declined to comment. Investigation The CFTC includes some officials who worked on the BitMEX anti-cryptoburse case.
Last month, BitMEX agreed to pay $ 100 million in the settlement. CFTC they accused the exchange of allowing the US population to trade in derivatives and lacked proper anti-money laundering controls.
Binance and regulatory problems
The world’s largest crypto exchnage solves compliance problems in many countries. Bloomberg reported in March that the exchange is the subject of an investigation by the US Commodity Futures Trading Commission. Regulator wanted to find out whether crypto derivatives were bought and sold by US citizens on the exchange platform. Subsequently, in May, another report came in that the US Department of Justice and the IRS were also investigating the group for money laundering.
The growing list of countries requires the exchange to stop offering services due to a lack of proper licenses. Thailand, United Kingdom, Malaysia, Hong Kong, Italy, Singapore and South Africa are some of the countries where Binance has faced regulatory problems.