From Hamas warnings to VIP perks and criminal clients: the US regulator’s claims against Binance

From Hamas warnings to VIP perks and criminal clients: the US regulator’s claims against Binance

Just months after the FTX collapse, a US watchdog is suing Changpeng Zhao’s firm, the world’s biggest digital-asset market, over a slew of allegations that make jaw-dropping reading

Binance is the world’s largest cryptocurrency exchange and a cornerstone of the $1tn digital asset market. It has 128 million customers, handles $65bn in daily trades and its commercial partners include Cristiano Ronaldo, Italy’s Lazio football team and TikTok megastar Khaby Lame. So when a US regulator announced last week it was suing Binance for “wilful evasion of US law”, it was a significant moment for a sector still reeling from the collapse of FTX.

The Commodity Futures Trading Commission (CFTC) filed the civil enforcement action in a federal court in Chicago, seeking punishments including fines and permanent trading bans. It is suing Binance’s Canadian founder and chief executive, Changpeng Zhao, and three entities that operate the Binance global trading platform over numerous alleged violations of its regulations and of the Commodity Exchange Act. Binance’s former chief compliance officer, Samuel Lim, is also being sued.

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