The US Commodity Futures and Trading Commission (CFTC) has filed a complaint against Binance, its CEO Changpeng Zhao, and three entities that operate the Binance platform, alleging multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The complaint also accuses Samuel Lim, Binance’s former chief compliance officer, of aiding and abetting. The CFTC claims that Binance failed to perform identity verification checks and implement compliance controls to prevent money laundering on its platform. The complaint also alleges that Binance attempted to conceal its inadequate compliance efforts from business partners. The CFTC seeks disgorgement, civil monetary penalties, and permanent trading and registration bans against Binance. The US Justice Department is also investigating the firm over suspected money laundering and sanctions violations, while the SEC is scrutinising its BUSD stablecoin.