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CFTC Accuses Binance of Trading with CEO-Linked Accounts

The U.S. Commodity Futures Trading Commission (CFTC) has alleged that Binance traded with 300 "house accounts" associated with its CEO, Changpeng Zhao. In response, the U.S. agency has filed a lawsuit against both the cryptocurrency exchange and Zhao in federal court.

Lack of Anti-fraud Controls for House Accounts

The lawsuit claims Binance failed to subject the 300 house accounts to "anti-fraud or anti-manipulation surveillance or controls." Additionally, it highlights that these accounts were exempt from newly implemented insider trading policies.

Details of the Binance Lawsuit

Court documents reveal that the US CFTC is accusing Binance of trading with 300 house accounts, which are directly and indirectly associated with CEO Changpeng Zhao. The lawsuit was filed in a Chicago Federal Court. The CFTC stated in the documents, "During the relevant period, Binance has traded on its platform through approximately 300 'house accounts' that are all directly or indirectly owned by Zhao."

Binance's U.S. Operations Under Scrutiny

The lawsuit also criticizes Binance's operations in the United States, claiming that the exchange "purposefully obscures the identities and location of the entities operating the trading platform." Furthermore, it accuses Binance's senior management of failing to supervise the company's activities properly and actively facilitating violations of U.S. law.