Binance and its CEO and founder Changpeng Zhao have been sued for allegedly operating an “illegal” exchange and a “sham” compliance programme.
The U.S. Commodity Futures Trading Commission (CFTC) on Monday said it was a wilful evasion” of US law, while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit.
The lawsuit comes amid a broader and increasingly high-profile crackdown on crypto companies.
According to Reuters, CFTC complaint that from July 2019 to the present, Binance offered and executed commodity derivatives transactions on behalf of U.S. persons,” in violation of U.S. laws.
For years, U.S. prosecutors and civil investigators have targeted crypto firms for illegal offerings and failures to comply with rules designed to prevent illicit activity. But the pace of such government activity has surged recently.
A spokesperson for Binance said the firm would continue to collaborate with regulators despite the lawsuit being unexpected and disappointing.
