The Commission now has access to all of the exchange’s records, which could serve as a catalyst for uncovering additional cases of mishandled funds or suspected fraudulent activities.
The recent news that the former CEO of Binance pleaded guilty to money laundering charges has certainly made headlines, adding to the circumstances that led to his decision to step down as CEO. A settlement was reached to resolve this matter, resulting in a $50 million fine imposed on CZ (the former CEO) and a $4.3 billion payment to be made by Binance itself.
With these measures in place, the exchange can continue operating without further interruptions due to the aforementioned case. However, this has shaken the faith of some of the crypto company’s users as they have begun to aggressively withdraw from the exchange in recent days.
It should be noted that the ongoing legal proceedings show no signs of slowing down. Christy Goldsmith Romero, commissioner of the United States Commodity Futures Trading Commission (CFTC), has stated that the commission will take legal action against crypto exchanges that violate the country’s trading laws.
Romero pointed out that operating in the US market should be viewed as a privilege rather than an inherent right, emphasizing the expectation that all entities, including non-US companies, strictly follow the law.
In his statement, the government official highlighted the importance of not using Virtual Private Networks (VPN) or engaging in activities that violate the fundamental principles of Know Your Customer (KYC) protocols. This includes addressing concerns about limited scrutiny of customer responses that ask only about their citizenship in the United States without attempting to verify the accuracy of those statements.
Regulators’ Aggressive Approach Towards Crypto Companies
The global cryptocurrency market has recently experienced significant turbulence as a result of the unwavering determination of regulatory bodies, as exemplified by the determined stance taken by the Chairman of the United States Securities and Exchange Commission (SEC) towards companies and services. of cryptocurrencies.
Noteworthy are recent activities by US regulators that have attracted significant attention, particularly with respect to prominent exchanges. Among these exchanges, Coinbase has also been embroiled in a series of legal battles, with the SEC filing multiple lawsuits against the platform. As a result, Coinbase has been forced to defend its position in several court cases.
It Seems There’s Still No End in Sight to Binance’s Woes
According to a recent post by Whale Wire on X (formerly Twitter), the US CFTC also highlighted the far-reaching implications of the ongoing Binance case:
“JUST IN: CFTC says case against Changpeng Zhao and #Binance is just the BEGINNING of aggressive pursuit, and that there are no borders when it comes to prosecuting non-US entities.
The money laundering charges are merely the TIP of the iceberg. There is a lot more they’re going to discover now that they have access to all of Binance’s records.”
According to a recent post by Whale Wire on X, the US CFTC also highlighted the far-reaching implications of the ongoing Binance case. The money laundering accusations may be just the beginning of legal problems for both the company and its former CEO.
The commission now has access to all of the exchange’s records, which could serve as a catalyst for uncovering additional cases of mishandled funds or suspected fraudulent activities. As a result, it is clear that the CFTC is steadfast in its commitment to ensuring that non-U.S. entities comply with the country’s regulatory framework.
By Audy Castaneda
