Binance CEO Changpeng Zhao (CZ) addressed the allegations against him by the US Commodity Futures Trading Commission (CFTC).” We disagree with many of the problematic features alleged in the complaint,” the executive stressed.
CZ Responds to CFTC Allegations
Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, published a blog post on Monday regarding a civil enforcement action by the U.S. Commodity Futures Trading Commission (CFTC) against himself and the crypto exchange. The U.S. regulator charged Zhao and three entities operating the Binance platform with “numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations.”
Noting that it was “unexpected” and “disappointing” that the CFTC filed a civil lawsuit against him and Binance, Zhao explained:
On initial review, the complaint appears to contain incomplete statements of fact and we disagree with many of the complaint’s alleged disagree with the characterization of the issues.
CZ stated that “a complete answer will be forthcoming” and referred to several important points. First, he claimed that “Binance.com has developed best-in-class technology to ensure compliance” and added: “Nationality (KYC), IP (including VPN endpoints commonly used outside the US), mobile carriers, device fingerprints, bank deposits and withdrawals, block chain deposits and withdrawals, credit card bin numbers, etc. to block US users.”
The executive emphasized that his crypto company is “committed to transparency and working with regulators and law enforcement (LE)” both in the US and globally, elaborating:
Binance currently has over 750 people on its compliance team, many of whom have law enforcement or regulatory backgrounds.
He added that to date, Binance has responded to more than 55,000 law enforcement requests and assisted U.S. authorities in freezing and seizing more than $125 million in 2022 and $160 million in 2023.” We will continue to respect and cooperate with other regulators in the US and around the world.” CZ emphasized, “Binance.com holds the highest number of licenses/registrations in the world, 16 and counting.” He adds.
After revealing that he personally has two accounts at Binance, one for his Binance Card and the other for his crypto holdings, Zhao claimed that Binance.com is not involved in trading or market manipulation for profit.” Binance.com has a 90-day trading ban rule for employees, which means that they are prohibited from selling coins within 90 days of their most recent purchase, or vice versa,” he shared, adding. “It also prohibits employees from trading futures. In addition, we have a strict policy on who has access to private information, such as listings and Launchpad details. They are not allowed to buy or sell those coins.”
The Binance boss concluded:
I myself strictly adhere to these policies. I have never participated in Binance Launchpad, Earn, Margin, or Futures.
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