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He’s already posed with FTX boss Sam Bankman-Fried, 31. Now Changpeng Zhao (46) should hope that this is not a bad omen. Because Binance, the founder of the world’s largest cryptocurrency exchange, is facing a lawsuit filed by the US supervisory authority CFTC.
The case has fluctuated Monday evening and is tough: the authority accuses Binance boss Zhao of failing to follow “basic compliance procedures” against terrorist financing and money laundering. In addition, Zhao’s employees and customers have been instructed to deliberately circumvent checks. Always with the goal of maximizing profits in mind.
What particularly bothers Americans: Although Binance does not require any information to verify identity in the US, this is actually required by law.
The head of authorities, Rostin Behnam, chose clear words: “Binance has known for years that it violated CFTC rules.” The lawsuit is “a warning to everyone in the digital assets world that the CFTC will not tolerate deliberate circumvention of US law.” The lawsuit against Binance is part of an effort to “find and stop wrongdoing in the volatile and risky digital securities market”.
Binance is the world’s largest crypto exchange. The company’s advertising vehicle is none other than football star Cristiano Ronaldo (38). Millions of investors worldwide own cryptocurrencies like Bitcoin or Ether on Binance.
The lawsuit comes at the worst possible time for the company. At the end of last year, there were rumors that after FTX, Binance could also experience corresponding liquidity problems. Although these voices are now silenced, there is now a risk of hundreds of millions of dollars in fines or, at worst, even the crypto exchange shutting down.
Still, investors don’t seem to be assuming the worst-case scenario that could cause major turmoil in the markets. Bitcoin price fell 3%. However, for a digital currency, this is a relatively weak price drop.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
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