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News

Binance Sees $850M Withdrawal Amid CFTC Indictment

March 28, 2023 - Around 2 mins mins to read

Key Points:

  • US CFTC accuses Binance and CEO of regulatory violations.
  • Almost $1.5 billion in crypto withdrawn from centralized exchanges, including Binance, Kraken, Coinbase and Bitfinex.
  • Binance allegedly conducted transactions in Bitcoin, Ether and Litecoin for US citizens without properly registering with the derivatives regulator.
Binance CEO Changpeng Zhao has been accused of regulatory violations by the United States Commodity Futures Trading Commission (CFTC).
Binance CFTC

The indictment comes after nearly $1.5 billion in crypto was reportedly withdrawn from centralized exchanges such as Binance, Kraken, Coinbase, and Bitfinex. More than half of that amount, specifically $850 million, taken out from Binance. After the announcement of the indictment, Binance saw an additional $240 million withdrawn.

The CFTC filed a suit against Binance and CZ in the U.S. District Court for the Northern District of Illinois, alleging that the company failed to meet its regulatory obligations by not properly registering with the derivatives regulator. Binance allegedly conducted transactions in Bitcoin, Ether, and Litecoin for U.S. citizens since at least 2019.

Binance CFTC 2

In addition to the CFTC’s lawsuit, Binance is also under investigation by the Internal Revenue Service (IRS) and federal prosecutors. The Securities and Exchange Commission (SEC) is investigating whether Binance allowed U.S. traders to access unregistered securities. Despite these legal troubles, Binance still holds an impressive $63.36 billion worth of cryptocurrency assets, including over $2 billion worth of USDT, $17 billion worth of Bitcoin, and $8.1 billion worth of Ether.

Changpeng Zhao has already rejected the allegations from the CFTC, arguing that the crypto exchange “does not trade for profit or ‘manipulate’ the market under any circumstances.” While Binance’s legal troubles have garnered significant attention, the company’s substantial assets and Zhao’s fervent defense of the exchange may indicate that Binance will remain a major player in the world of cryptocurrency.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

Binance Sees $850M Withdrawal Amid CFTC Indictment

Key Points:

  • US CFTC accuses Binance and CEO of regulatory violations.
  • Almost $1.5 billion in crypto withdrawn from centralized exchanges, including Binance, Kraken, Coinbase and Bitfinex.
  • Binance allegedly conducted transactions in Bitcoin, Ether and Litecoin for US citizens without properly registering with the derivatives regulator.
Binance CEO Changpeng Zhao has been accused of regulatory violations by the United States Commodity Futures Trading Commission (CFTC).
Binance CFTC

The indictment comes after nearly $1.5 billion in crypto was reportedly withdrawn from centralized exchanges such as Binance, Kraken, Coinbase, and Bitfinex. More than half of that amount, specifically $850 million, taken out from Binance. After the announcement of the indictment, Binance saw an additional $240 million withdrawn.

The CFTC filed a suit against Binance and CZ in the U.S. District Court for the Northern District of Illinois, alleging that the company failed to meet its regulatory obligations by not properly registering with the derivatives regulator. Binance allegedly conducted transactions in Bitcoin, Ether, and Litecoin for U.S. citizens since at least 2019.

Binance CFTC 2

In addition to the CFTC’s lawsuit, Binance is also under investigation by the Internal Revenue Service (IRS) and federal prosecutors. The Securities and Exchange Commission (SEC) is investigating whether Binance allowed U.S. traders to access unregistered securities. Despite these legal troubles, Binance still holds an impressive $63.36 billion worth of cryptocurrency assets, including over $2 billion worth of USDT, $17 billion worth of Bitcoin, and $8.1 billion worth of Ether.

Changpeng Zhao has already rejected the allegations from the CFTC, arguing that the crypto exchange “does not trade for profit or ‘manipulate’ the market under any circumstances.” While Binance’s legal troubles have garnered significant attention, the company’s substantial assets and Zhao’s fervent defense of the exchange may indicate that Binance will remain a major player in the world of cryptocurrency.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News