Binance and founder Changpeng Zhao sued by CFTC

Binance and its founder Changpeng Zhao are being sued by the Commodity Futures Trading Commission for numerous alleged violations of the Commodity Exchange Act and CFTC regulations.

Binance’s former chief compliance officer, Samuel Lim, was also charged with aiding and abetting Binance’s violations.

In its complaint, the CFTC claimed that cryptocurrency exchange giant Binance “allegedly chose to knowingly disregard applicable provisions of the CEA while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit.”

For example, Binance did not require customers to provide any identity-verifying information. It also communicated with U.S. customers using a messaging platform that automatically deleted written communications.