Crypto Giant Binance In Hot Water: CEO Responds To Trading Violation Claims

Today, the U.S. Commodities and Futures Trading Commission (CFTC) filed a lawsuit against crypto exchange Binance and its CEO, Changpeng “CZ” Zhao. The regulator is accusing the executive and the company of allegedly violating trading rules in the country.

In an official blog post, Zhao replied to the complaint and classified them as “unexpected” and “disappointing.” The executive claims that the company has worked with the U.S. regulator since 2021. Zhao said:

(…) the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint.

BNB’s trends to the downside on the daily chart. Source: BNBUSDT Tradingview

Binance CEO Eats The Company’s “Dog Food”?

Zhao breakdown the charges, including Binance’s capacity to enforce compliance with U.S. trading rules. The crypto exchange’s CEO claims the platform has implemented a mandatory Know Your Customer (KYC) program and Anti Money Laundering rules for all customers.

Furthermore, Zhao claims that Binance has the technological capability to “block” U.S. users from accessing its international platform. Therein, users can trade crypto options and perpetual futures contracts with leverage.

In that sense, the statement denied that Binance uses its platform to trade against its customers. It only allows certain institutional partners to provide liquidity in several “less liquid pairs” for a “small profit.” Zhao himself denied that he benefits from trading on the crypto exchange:

Personally, I have two accounts at Binance: one for Binance Card, one for my crypto holdings. I eat our own dog food and store my crypto on Binance.com. I also need to convert crypto from time-to-time to pay for my personal expenses or for the Card.

The crypto exchange claims that

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Author: Reynaldo Marquez

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