Binance deliberately broke the law, says CFTC leader

CFTC Chairman Rostin Benham has accused Binance of purposefully breaking regulatory rules, Bloomberg reported.

During a Princeton University event, Benham described Binance’s leadership by stating:

“These are not unsophisticated individuals…They are starting large companies and offering futures contracts and derivatives to US customers.”

Benham reportedly went on to say that Binance deliberately broke the rules set out by the Commodities and Futures Trading Commission (CFTC) with its activities. He added that there is an understanding among companies that offer futures products in the U.S. that they must register with the regulator and comply with all relevant laws.

Because Benham made these comments at a private event, it is unclear how much impact his statements might have on the CFTC’s ongoing case against Binance.

The CFTC originally filed charges against Binance, its CEO Changpeng Zhao, and related parties on March 27. At that time, the regulator alleged that Binance illegally offered trading and derivatives ordering to U.S.-based customers.

Those charges also described other wrongdoing concerning private messages, failure to enforce geoblocking, and knowledge of illegal customer activity.

Binance responded to the charges by asserting that it complies with regulations and by stating that it will cooperate with regulators.

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