Binance’s CZ’s Response to the CFTC Complaint

On March 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO Changpeng Zhao (CZ) for regulatory violations. In particular, Binance is under scrutiny for allegedly violating derivatives trading rules. In fact, the lawsuit also alleges that Binance traded on its own platform with 300 accounts linked directly or indirectly to CEO Changpeng Zhao.

Given the sheer size of the platform, where only the daily crypto trading accounts for more than 5.7 billion dollars, both Bitcoin and Ethereum immediately sank on the news. But let’s not forget, that Binance does not operate in the U.S. jurisdiction, so at first glance this is a strange situation.

As for CZ, his only answer so far has been “4”, which is his way of telling people to “ignore FUD, fake news, attacks, etc.” about Binance. At the same time, Binance wrote on its blog: “Binance is committed to transparency and cooperation with regulators and law enforcement — in the U.S. and globally. Binance currently has more than 750 people in its compliance teams, many with prior law enforcement and regulatory agency backgrounds. To date, Binance has handled 55,000+ LE requests, and assisted U.S. LE freeze/seize more than $125 million in funds in 2022 alone and $160 million in 2023 so far.” To be continued.