US Regulators Sue Binance , and Its CEO.<br />The Verge reports that the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CEO Changpeng Zhao on March 27.<br />In addition to allegedly having an "ineffective <br />compliance program," the CTFC claims Binance <br />"knowingly" violated U.S. trading and derivatives laws.<br />The company's former chief of compliance, Samuel Lim, has also been charged with allegedly “aiding and abetting Binance’s violations through intentional conduct that undermined Binance’s compliance program.”.<br />The CTFC claims that the responsible parties <br />"failed to properly supervise Binance's activities" which "actively facilitated violations of U.S. law.".<br />The Verge reports that Binance has previously been criticized about where the company is actually located, which the lawsuit also addresses.<br />Binance’s reliance on a maze of corporate entities to operate the Binance platform is deliberate; <br />it is designed to obscure the <br />ownership, control, and location <br />of the Binance platform, Via the CTFC's lawsuit.<br />Binance is so effective at obfuscating its location and the identities of its operating companies that it has even confused its own Chief Strategy Officer, Via the CTFC's lawsuit.<br />CFTC Chair Rostin Behnam <br />also issued a statement.<br />For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance, Rostin Behnam, CFTC chair, via statement.<br />This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of U.S. law, Rostin Behnam, CFTC chair, via statement
