Binance’s troubles with regulators grow as U.S. authorities are now reportedly investigating the exchange for possible insider trading and market manipulation. The investigation involves the Commodity Futures Trading Commission (CFTC). The Justice Department (DOJ) and the Internal Revenue Service (IRS) have also been investigating Binance on a separate issue.
Binance Probed for Possible Insider Trading, Market Manipulation
U.S. authorities are now investigating Binance for possible insider trading and Market manipulation to ascertain whether the company or its staff profited by taking advantage of its customers, Bloomberg reported Friday, citing people familiar with the matter. Binance was quoted saying:
At Binance, we have a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry.
The review involves the Commodity Futures Trading Commission (CFTC) investigators, who have been reaching out to potential witnesses in recent weeks, the publication conveyed. The derivatives watchdog has already been probing whether Binance lets U.S. residents buy and sell derivatives linked to bitcoin and other cryptocurrencies, which is prohibited since Binance is not registered with it.
Besides the CFTC, the U.S. Department of Justice (DOJ) and the Internal Revenue Service (IRS) are also investigating Binance. The two previously launched criminal probes into whether the exchange has been a conduit for money laundering and tax evasion, the publication also reported. The company has not been accused of wrongdoing and the investigations may not lead to any official action.
A growing number of regulators globally have issued warnings against Binance for illegally operating in their jurisdictions, including in the U.K., Japan, Thailand, Malaysia, Hong Kong, Singapore, Netherlands, Germany, Lithuania, and South Africa.
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