FatMan, a prominent member of the Terra Research Forum, has voiced his disappointment with Changpeng Zhao, the CEO of Binance, in light of recent allegations of undisclosed in-house trading by the US Commodity Futures Trading Commission (CFTC).
The recent revelation of Binance’s secret in-house trading accounts and access to proprietary client data has disheartened and jolted many in the crypto community. One such individual, FatMan, expressed his disappointment, stating that he had previously considered the Binance CEO an upstanding and trustworthy ambassador of the crypto space. This news marks a very dark day for the industry and raises concerns about the transparency and integrity of exchanges.
In light of the recent accusations, the CEO of Binance has come forward to deny any wrongdoing vehemently. With conviction, Zhao stated that the exchange does not engage in profit-driven trading or market manipulation under any circumstances. He went on to clarify that Binance only converts cryptocurrency to fiat periodically, solely to cover necessary expenses. Furthermore, the company has implemented a strict 90-day no-day-trading policy for employees and rigorous protocols for those with access to confidential information, such as listing details and Launchpad. Rest assured, Binance remains committed to upholding the industry’s highest standards of integrity and transparency.
On Monday, it was reported that the CFTC had initiated legal proceedings against Binance, citing various allegations, including the operation of a derivatives trading platform in the US. The exchange is accused of facilitating trades for various cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, Tether, and Binance USD.
Furthermore, the regulatory body has levied allegations against Binance for contravening regulations about futures transactions and illicit off-exchange commodity options, insufficiently executing know-your-customer protocols and anti-money laundering procedures.
According to industry experts, the CFTC may mandate Binance to halt the activities of its US-based arm, Binance.US, as a potential resolution. It is worth noting that Binance.US constitutes a mere fraction of the exchange’s worldwide operations, accounting for less than 5%.
