The US Commodity Futures Trading Commission has sued Binance Holdings Ltd., the world’s largest cryptocurrency exchange, and its CEO, Changpeng Zhao, for allegedly violating trading and derivatives rules.
The CFTC filed the lawsuit in federal court in Chicago on Monday. Binance violated its obligations, according to the derivatives regulator, by failing to properly register with it.
Since at least 2021, the CFTC has been investigating Binance for failing to prevent US residents from buying and selling crypto derivatives. Platforms must generally register with the CFTC if they allow Americans to trade those products.
The regulator is one of several US agencies looking into Binance’s activities. According to Bloomberg News, the Internal Revenue Service and federal prosecutors are investigating Binance’s anti-money-laundering rule compliance. The Securities and Exchange Commission is investigating whether the exchange facilitated the trading of unregistered securities.