- Cryptocurrency trading has fallen after the CFTC sued major exchange Binance for regulatory violations.
- Bitcoin and Ether are trading at around $27,000 and $1,700 respectively, down about 3% over the past 24 hours.
- Binance called the CFTC complaint “unexpected and disappointing.”
The two major cryptocurrencies, Bitcoin and Ether, fell about 3% on Monday after the Commodity Futures Trading Commission (CFTC) sued Binance. CEO Zhao Changpeng, Former Chief Compliance Officer Samuel Lim for violating regulations.
Bitcoin and Ether prices are around $27,000 and $1,700 per token respectively. coin market capitalization data. Both cryptocurrencies hit all-time highs in November 2021 when they soared above $69,000 and he $4,800.
The news also spurred an ether outflow of hundreds of millions of dollars in 24 hours from Binance. CoinDesk It reported on Tuesday, citing data from Nansen, a blockchain data analytics firm.
US regulators said: Complaint Filed Monday in Chicago Federal Court Binance violated eight articles of the Commodity Exchange Act.
The CFTC said that Binance has “favorable and commercially significant ‘VIP'” customers, including U.S. institutional investors, ignoring registration and regulatory requirements under U.S. law. Federal agencies are asking courts to impose fines on exchanges as well as bans from trading and registration.
Binance’s Zhao wrote: monday blog The CFTC complaint was “unexpected and disappointing,” as the exchange “has been working with the CFTC for over two years.”
“In our initial review, the complaint appears to contain incomplete descriptions of the facts and we disagree with the characterization of many of the issues alleged in the complaint,” he added.
A Binance spokesperson responded to insiders by email late Monday for comment, saying the exchange had “heavy investments” to ensure there were no active US users on the platform over the past two years. Measures include growing its compliance team more than sevenfold and spending an additional $80 million on external partners to support its compliance program.