Binance Boss Changpeng Zhao Becomes The Target Of US Financial Supervisory, CFTC

Binance CEO Changpeng Zhao. (Photo; Doc. CoinBulteni)

JAKARTA - In the world of crypto investment, Binance is one of the leading crypto exchangers that traders often choose. However, recently, the company has received the spotlight of the United States financial regulatory agency, Commodity Futures Trading Commission (CFTC).

The CFTC suspects that Binance CEO Changpeng Zhao is involved in illegal and unregistered trading on the financial watchdog. Binance categorically denied CFTC's allegations, but Zhao's statement regarding the use of Binance products was in the spotlight in this case.

This is related to Zhao's confession that he kept his own money on Binance, according to his statement on the exchange website on March 27. Zhao frankly uses the products on the Binance crypto trading platform.

However, Zhao denied claims that Binance employees had unlimited access to the Binance platform. Furthermore, Zhao added that he and other employees were limited from trading according to 90 days of rules. According to a Cryptoslate report, Zhao insists that he "complies with this policy... strictly." In addition, Zhao also admitted that he had never used certain Binance features such as Launchpad, Earn, Margin, or Futures.

Contrary to Zhao's statement, in the submission of 27 March CFTC, Zhao accused Zhao of controlling 300 accounts that had been traded on Binance for property purposes and direct or indirect owners of the unregistered company Merit Peak and Sigma Chain on the CFTC.

In response to this, Binance stated that the company is trading to convert crypto income into fiat and other cryptocurrencies and instead cover costs. The company also has affiliates that provide liquidity and are monitored to ensure limited profit. However, Binance did not mention Merit Peak or Sigma Chain specifically in its statement.

Previously, Binance stated that the company was complying with regulations and considered the CFTC allegations to be unexpected and disappointing. Even so, the CFTC claims that Zhao was involved in Binance trading through two private accounts, and other employees were limited to buying or selling certain cryptocurrencies within 90 days of the previous purchase or sale.

However, Binance remains adamant that the company complies with regulations and considers CFTC allegations to be unexpected and disappointing. Even so, Binance remains open to collaborating with CFTC in carrying out ongoing investigations. Binance affirms the company's commitment to complying with existing regulations and maintains integrity in managing the crypto exchange platform.