Shroder joined the Binance.US as president in September 2021 and was named CEO the following month. The cryptocurrency exchange did not specify when or why Shroder departed, but said that chief legal officer Norman Reed is now serving as interim CEO. affiliate has departed the crypto trading platform amid another round of job cuts.īinance.US CEO Brian Shroder is no longer with the company, a spokesperson confirmed to The Associated Press Wednesday. The lawsuit also highlights the challenges that crypto exchanges face in complying with multiple and sometimes conflicting regulatory regimes across different countries.NEW YORK - The CEO of Binance's U.S. The CFTC's lawsuit against Binance is a significant development in the regulation of the cryptocurrency industry, as it signals the agency's determination to enforce its jurisdiction over digital assets and derivatives products. authorities, including the Securities and Exchange Commission, the Federal Trade Commission, and the Department of Justice, for possible violations of securities laws, consumer protection laws, and criminal laws. ![]() ![]() The CFTC's enforcement action is part of a broader regulatory crackdown on the cryptocurrency industry in the wake of the collapse of FTX, another crypto exchange that was sued by the CFTC for similar violations last year.Īccording to various media reports, Binance is also under investigation by other U.S. ![]() The CFTC is seeking disgorgement of ill-gotten gains, civil monetary penalties, permanent injunctions, trading and registration bans, and any other appropriate relief against Binance, CZ, and Samuel Lim, Binance's former chief compliance officer. customers to use virtual private networks to mask their locations and access its platform, which was not available in the U.S. For example, the complaint alleges that Binance instructed its U.S. The complaint cites internal chats and emails that show Binance's awareness of its legal obligations and its deliberate efforts to avoid them. The CFTC also alleges that Binance failed to implement adequate controls to prevent and detect money laundering and terrorism financing, as well as to comply with the Bank Secrecy Act and other applicable laws. customers for these products without registering with the CFTC as a futures commission merchant, a designated contract market, or a swap execution facility, as required by the Commodity Exchange Act. The CFTC alleges that Binance solicited and accepted orders from U.S. District Court for the Northern District of Illinois, Binance operated a global online platform that allowed users to trade various digital assets, including bitcoin, ether, and other cryptocurrencies, as well as derivatives products such as futures and options contracts. regulations.Īccording to the complaint filed on March 27, 2023, in the U.S. ![]() customers, failed to implement adequate compliance and anti-money laundering (AML) measures, and engaged in a scheme to evade U.S. The CFTC claims that Binance and its co-founder and CEO Changpeng Zhao (CZ) knowingly offered unregistered futures and options products to U.S. Commodity Futures Trading Commission (CFTC) for allegedly violating U.S. Binance, the world's largest cryptocurrency exchange by trading volume, is facing a lawsuit from the U.S.
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