Binance CEO Changpeng ‘CZ’ Zhao has rejected allegations from the Commodities Futures and Buying and selling Fee, arguing the corporate “does not trade for profit or ‘manipulate’ the market under any circumstances.”
The chief government shared his first official response to the lawsuit in a March 28 weblog put up.
My Response to the CFTC Criticism | Binance Weblog https://t.co/TadyotM7HN
— CZ Binance (@cz_binance) March 27, 2023
The CEO argued that whereas Binance “trades” in plenty of conditions, that is primarily to transform them “from time-to-time” to cowl bills in fiat or different cryptocurrencies, as its revenues are in crypto.
“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.”
CZ was responding to the CFTC’s accusation that Binance traded by itself platform via about 300 “house accounts” and has not disclosed to its prospects that Binance is buying and selling in its personal market in its Phrases of Use or elsewhere.
The CFTC went on to say that Binance is maintaining this info a “top secret” and that they’ve refused to reply to Fee-issued investigative subpoenas searching for info on its buying and selling exercise.
“On information and belief, Binance has not subjected the trading activity of Merit Peak, Sigma Chain, or its approximately 300 house accounts to any anti-fraud or anti-manipulation surveillance or controls […]”
Zhao famous that Binance has a 90 day no-day-trading rule for workers, including:
“This is to prevent any employees from actively trading. We also prohibit our employees from trading in Futures.”
He went additional to state that staff are restricted from shopping for or promoting cash the place they’ve obtained “private information” about them.
“I observe these policies myself strictly. I also never participated in Binance Launchpad, Earn, Margin, or Futures. I know the best use of my time is to build a solid platform that services our users,” he added.
Zhao known as the current CFTC submitting each “unexpected and disappointing,” because it had been working cooperatively with the regulator for over two years. He additionally famous that the criticism “appears to contain an incomplete recitation of facts.”
Concerning the compliance allegations, CZ says Binance.com has developed “best-in-class” expertise to make sure compliance and at the moment has greater than 750 individuals working to make sure their enterprise operates throughout the bounds of anti-money laundering (AML) and know your consumer (KYC) legal guidelines:
“To date, we have handled 55,000+ LE requests, and assisted US LE freeze/seize more than $125 million in funds in 2022 alone and $160 million in 2023 so far.”
Associated: CFTC calls ETH a commodity in Binance swimsuit, highlighting the complexity of classification
CZ additionally identified that Binance.com holds 16 licenses to supply digital asset buying and selling companies, probably the most of any cryptocurrency buying and selling platform.
It is a growing story, and additional info will likely be added because it turns into accessible.