Binance's CEO, Changpeng Zhao, has expressed his disappointment and surprise at the civil complaint filed against the leading cryptocurrency platform by the US Commodity Futures and Trading Commission (CFTC). The CFTC has sued Binance over violation of trading and derivatives regulations.
In response, Zhao has stated that the complaint was "unexpected and disappointing," adding that Binance has been working collaboratively with the CFTC for two years and that the complaint contains an incomplete recitation of facts, with many of the issues alleged in the complaint being disputed by the company. Binance.com has developed robust technology to ensure compliance and transparency with regulators and law enforcement worldwide, he added.
"Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterisation of many of the issues alleged in the complaint," the Binance CEO said.
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Zhao has also stated that the company is committed to cooperating with regulators and law enforcement in the US and globally. Binance has over 750 people in its compliance teams, many with prior law enforcement and regulatory agency backgrounds. The CFTC has alleged that Binance has never registered with it and has "disregarded federal laws" governing US financial markets, including laws aimed at preventing and detecting money laundering and terrorism financing.
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Zhao has denied allegations that he or other senior management personnel were involved in Binance Launchpad, Earn, Margin, or Futures. He believes the best use of his time is to build a solid platform that serves Binance's customers. Zhao stated that the company would respond fully to the CFTC civil complaint in due course. The CFTC has alleged that Binance's monthly revenue earned $1.14 billion from derivatives transactions in May 2021, up from $63 million in August 2020, and around 16 per cent of Binance's accounts were held by US customers. The filing also stated that Zhao and other senior management personnel failed to supervise Binance's activities and actively facilitated violations of US law.
Binance is the world's largest cryptocurrency exchange by trading volume, with over 90 million customers worldwide and around $9 billion in trading activity in the last 24 hours. The CFTC's civil complaint has come as a surprise to Binance, and the company is committed to working with regulators to resolve any issues.
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