Crypto platform Binance Generates 90% From Transaction Fees : CZ
Crypto platform Binance Generates 90% From Transaction Fees : CZ

Binance CEO CZ rejects CFTC allegations of breaking derivatives rules

Binance CEO CZ rejects CFTC allegations in its complaint against Binance on March 27, 2023, and responds against them. Changpeng ‘CZ’ Zhao said in response that the cryptocurrency exchange does not carry out trading in order to influence the market or for profit in any case. He also stated that the lawsuit by the Commodities Futures and Trading Commission was misinterpreting the facts, and the allegations were not at all true.

What did the complaint by the Commodities Futures and Trading Commission say?

The CFTC alleged that Binance had been using around 300 house accounts in order to trade on its own platform and did not display these in its terms of use for its customers to read and comprehend before moving on with the use of the platform. The CFTC further stated that authorities at Binance had refused to cooperate with commission-issued subpoenas that were investigative in nature and wanted information about the platform’s activity.

Binance has not released the activity of Merit Peak, Sigma Chain or the rest of its house accounts. CFTC also said that the staff of the platform engages in insider trading regularly. Binance CEO CZ rejected CFTC allegations saying that the employees “trade” mainly in order to convert the crypto revenue gained by the platform to cover the expenses in other cryptocurrencies such as fiat.

Chanpeng has commented on the above allegations

Binance CEO CZ rejects CFTC allegations by saying that he has two accounts on the platform: one for his holdings in crypto and the other for his company’s card. He keeps all his crypto money on the platform and converts it from time to time in order to cover his personal expenses. His staff is strictly against insider trading, and Binance has a rule of no day trading for about 90 days to restrict them for trading practices. The employees are also restricted from sharing any private information about coin buying and selling. He himself follows these rules strictly.

CZ has called the allegations extremely disappointing and unexpected. He said that the utmost priority for him is to build a site that can cater to the requirements of the public and provide the best of services without revealing any private information about any user and making it public. Zhao went on to add that the platform had been working with the regulator of CFTC for 2 years now, and he never saw this coming.

Also Read: Binance experienced major BTC and stablecoin withdrawals after CFTC’s lawsuit.