Interesting battle unfolding between CFTC and SEC. CFTC maintains that ETH is Commodity.

Lost in the post is the actual court case is between the CFTC and binance.

It is about the CFTC suing binance for purposefully ignoring US laws. However since the CFTC is limited to civil actions, there is no criminal charges yet. However their investigation is pretty damming, probably only a matter of time. They best part is binance traded against it's own customers with 300 in house accounts.

CFTC against Binance limited


You would be crazy to hold money on binance especially if you are in the USA. Their us based bank signature was already taken over by the government. And now they are telling all the crypto customers to withdrawal by April 5th, since they could find no buyers for those customers.

Reuters story

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What US laws?

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According to the CFTC case

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The complaint charges that for much of the relevant period, Binance did not require its customers to provide any identity-verifying information before trading on the platform, despite the legal duty that entities like Binance functioning as futures commission merchants (FCMs) collect such information, and failed to implement basic compliance procedures designed to prevent and detect terrorist financing and money laundering.

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The complaint further alleges that even after Binance purported to restrict U.S. customers from trading on its platform, Binance instructed its customers – in particular its commercially valuable U.S.-based VIP customers – on the best methods for evading Binance’s compliance controls. In addition, the complaint charges Binance with acting as a designated contract market or swap execution facility based on its role in facilitating derivatives transactions without registering with the CFTC, as required.

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They blatantly ignored KYC/AML laws and even provided instructions to US based customers to circumvent them. If you read the report they have evidence from CZ himself through emails, texts, etc where he basically admits to these crimes. There is a reason why binance has no HQ listed in the world, and will probably be barred from doing business in the USA.

The government has already blocked binance from acquiring the bankrupt Voyager business.

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Defendants’ alleged willful evasion of U.S. law is at the core of the Commission’s complaint against Binance. The defendants’ own emails and chats reflect that Binance’s compliance efforts have been a sham and Binance deliberately chose – over and over – to place profits over following the law,” said Gretchen Lowe, CFTC’s Enforcement Division Principal Deputy Director and Chief Counsel. “Today’s enforcement action reflects that the CFTC and its Enforcement Division will pursue those digital asset platforms and individuals who flout and actively attempt to circumvent CFTC regulatory requirements. I thank the Enforcement team for their dedication and hard work in bringing this action.”

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It looks like the US government is mad at Binance for not spying for them.

If the US government cared that much about money laundering, Hunter and the big guy would have been investigated when the laptop evidence was released. The US government only cares about control and they can't control crypto without all of the exchanges complying.

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They blatantly ignored KYC/AML laws and even provided instructions to US based customers to circumvent them. If you read the report they have evidence from CZ himself through emails, texts, etc where he basically admits to these crimes. There is a reason why binance has no HQ listed in the world, and will probably be barred from doing business in the USA.

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You are referring to binance.com, which has already restricted access to US customers for a few years now.

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The government has already blocked binance from acquiring the bankrupt Voyager business.

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Binance.US is purchasing Voyager. The deal has been approved. The DOJ is trying to appeal, but this is also likely to be thrown out.

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You are referring to binance.com, which has already restricted access to US customers for a few years now.

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I'm not referring to anything. CFTC is the one accusing Binance. They basically accused binance and binance US of being one and the same.

That is why they are suing all of Binance holdings and companies.

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Besides the regulatory violations, the suit specifically targets Binance’s U.S. trading arms, Merit Peak and Binance.US.

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Don't see the government approving the sale of Voyager to binance US. When a pile of evidence was just presented on the same day that shows they are running out illegally. The CFTC is seeking that Binance cease operations completely in the USA.

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What law did the CFTC site?

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Lol

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Binance failed to register with the regulator and violated provisions of the Commodities Exchange Act and CFTC regulations, including legally mandated implementation of Anti-Money Laundering and Know Your Customer (AML/KYC) controls.

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They did not implement KYC/AML controls as required by law. Like every other financial institution in the US has to do.

Link to CFTC lawsuit, including more information about the numerous laws they are accusing them of breaking

Crypto exchanges aren’t like every other financial institution. That’s the point.

They operate vastly different by the nature of the technology.

As I said. They can’t agree on what’s a security or commodity. How can they then register properly?

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They basically accused binance

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Yes.

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and binance US

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No.

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Yes.

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and binance US


No.

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You should try reading the lawsuit.. clearly states on page 39 they used binance US as a lab to push large customers onto binance.com. not even mentioning they make multiple references that accuse CZ of being in charge of both.

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Zhao Controls Binance and Operates Binance as a Common Enterprise

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Lim also used Binance.US as a laboratory to identify important U.S. customers
that could be prioritized for expedited on-boarding to the Binance platform. In a July 15, 2020
chat, Lim explained to a Binance employee that he should first ask a prospective customer “to
onboard with US, then if their volume is really very big we will push hard on .com to accept it on
an exceptional basis . . . CZ will definitely agree to this lol.” Lim continued: “but they need to
really be doing sick arse volumes . . . we always have a way for whales.” Lim reiterated this
procedure in a July 27, 2020 chat, explaining that “getting on .com” would be “an issue” for a
prospective customer with “US beneficial owners” but that the prospective customer could “of
course get on Binance US and then if the volumes are good, we can find a way to backdoor them
to .com.”

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