On March 27, the Commodity Futures Trading Commission (CFTC) made allegations against Binance, a popular cryptocurrency exchange, for not being registered in the United States and for violating federal laws that regulate commodity markets.
Binance CEO, Changpeng Zhao, has swiftly responded to the lawsuit filed against the exchange in the Northern District Court of Illinois, refuting the accusations and claiming that the exchange never manipulates the market or tries to profit at any cost.
In an article posted on the company’s blog, Zhao stated that the allegations were an incomplete and inaccurate representation of the facts.
The CFTC claims that Binance uses its own accounts to trade cryptocurrencies and manipulate asset prices, but Zhao explained that these transactions are merely the exchange of cryptocurrencies for fiat money or other assets to cover the exchange’s costs.
Zhao also refuted the allegations of insider trading by Binance employees, explaining that the company has strict policies in place to prevent the buying and selling of cryptocurrencies using non-public information.
He emphasized that he personally enforces these policies and does not participate in Binance’s Launchpad and Earn programs or trade margined or futures products.
Binance CEO further defended the exchange by highlighting its large compliance department, which employs more than 750 people, and stated that all accusations of a lack of regulatory compliance were baseless.
He added that Binance always complies with the requests of regulators and law enforcement agencies, and even assists in the freezing and confiscation of assets.
In 2022, at the request of regulators, $125 million was frozen, and in the first months of 2023, $160 million worth of assets were frozen.
The CFTC claims that Binance deliberately violated the law by attempting to circumvent regulatory requirements. However, Zhao refuted these claims and emphasized the company’s commitment to providing a reliable platform for its users.