Reporter: Cai Ding, Editor: Gao HanSince the beginning of this month, there has been a continuous turmoil in the "coin circle".After Justin Sun, founder of Tron and member of Huobi's global advisory board, was sued by the Securities and Exchange Commission (SEC) on March 22, Eastern Time,On Monday, March 27th Eastern Time, the US Commodity Futures Trading Commission (CFTC) sued Binance, the world's largest cryptocurrency exchange, and its CEO, Zhao Changpeng, for alleged violations of regulatory measures.It is reported that CFTC filed the above-mentioned lawsuit in the Federal Court of Chicago on March 27th Eastern Time. CFTC stated that Coin An did not register with it, thus evading a series of its obligations.According to a Bloomberg report,Since at least 2021, the CFTC has been investigating whether Coin Security has failed to prevent the American public from buying and selling cryptocurrencies and their derivatives.According to CFTC rules, if a platform allows the American public to trade a certain derivative, it must be registered with that institution.Image source: TwitterAfter being sued by the US CFTC, Zhao Changpeng posted a one word tweet on his personal social media platform:fourSuspected of citing the fourth clause of its 2023 focus and recommendations released at the beginning of the year in response: IgnoreFUD, fakenews, attachments, etc, Ignoring FUD (fear, confusion, doubt) messages, fake news, malicious attacks, etcCFTC: The defendant intentionally disregarded relevant terms and regulationsAccording to a Bloomberg report,CFTCIRSSEC
Reporter: Cai Ding, Editor: Gao Han
Since the beginning of this month, there has been a continuous turmoil in the "coin circle".
After Justin Sun, founder of Tron and member of Huobi's global advisory board, was sued by the Securities and Exchange Commission (SEC) on March 22, Eastern Time,On Monday, March 27th Eastern Time, the US Commodity Futures Trading Commission (CFTC) sued Binance, the world's largest cryptocurrency exchange, and its CEO, Zhao Changpeng, for alleged violations of regulatory measures.
It is reported that CFTC filed the above-mentioned lawsuit in the Federal Court of Chicago on March 27th Eastern Time. CFTC stated that Coin An did not register with it, thus evading a series of its obligations.
According to a Bloomberg report,Since at least 2021, the CFTC has been investigating whether Coin Security has failed to prevent the American public from buying and selling cryptocurrencies and their derivatives.According to CFTC rules, if a platform allows the American public to trade a certain derivative, it must be registered with that institution.
Image source: Twitter
After being sued by the US CFTC, Zhao Changpeng posted a one word tweet on his personal social media platform:“four”，Suspected of citing the fourth clause of its 2023 focus and recommendations released at the beginning of the year in response: IgnoreFUD, fakenews, attachments, etc, Ignoring FUD (fear, confusion, doubt) messages, fake news, malicious attacks, etc。
CFTC: The defendant intentionally disregarded relevant terms and regulations
According to a Bloomberg report,CFTC是一直在调查币安的几个美国监管机构之一——美国国税局（IRS）和联邦检察官也一直在审查币安遵守反洗钱规则的情况，SEC也一直在审查币安是否在为客户交易一些未注册的证券。
According to the CFTC official website,It accuses Zhao Changpeng and three entities operating the Coin Security platform of repeatedly violating the Commodity Exchange Act (CEA) and other CFTC regulations.In addition to Zhao Changpeng, the institution also accused Samuel Lim, the former Chief Compliance Officer of Coin An, of aiding and abetting Coin An in violation of regulations.
CFTC accuses Coin An and its three entities of operating a centralized digital asset trading platform and numerous other corporate tools through a deliberate and opaque joint venture. It is said that the defendant also intentionallyIgnoring the applicable terms of the CEA and participating in carefully planned regulatory arbitrage for commercial interests.
CFTCSeek compensation, civil compensation, permanent market lockdown, and prohibit further violations of CEA and CFTC regulations.
CFTC Chairman Rostin Behnam said, "For many years, Coin Security has been knowingly violating CFTC regulations, but still trading. (Today's enforcement actions) should be a warning to anyone in the cryptocurrency industry, and CFTC will not tolerate intentional evasion of US law
Image source: CFTC official website
The defendant's alleged intentional evasion of US law is at the core of our commission's lawsuit against Coin An. The defendant's email and chat records show that Coin An's compliance is a scam, and Coin An has repeatedly deliberately chosen to prioritize profits over the law. Today's enforcement actions reflect that the CFTC and its enforcement agencies will pursue cryptocurrency platforms and individuals who flout and attempt to evade CFTC regulatory requirements Gretchen Lowe, Chief Deputy Director and Chief Legal Advisor of CFTC Law Enforcement, stated.
The lawsuit also states that since July 2019, Coin On has provided and executed commodity derivative transactions for Americans. Allegedly,Coin An's compliance plan has always been ineffectiveUnder the guidance of Zhao Changpeng, Coin An instructed its employees and customers to evade compliance controls in order to maximize the company's profits.
The complaint alleges that most of the time.Coin An did not require its customers to provide any identity verification information before trading on the platform,Although this is its legal obligation. In addition, Coin An has also failed to implement basic compliance procedures aimed at preventing and detecting terrorist financing and money laundering.
The lawsuit further points out that even after Coin An claimed to restrict US customers from trading on its platform, Coin An still provides its customers, especially commercially valuable US VIP customers, with the best way to avoid compliance regulations. In addition, the indictment also accuses Coin An of playing the role of a designated contract market or swap execution agency in facilitating derivative transactions without registering with the CFTC as required.
Zhao Changpeng once became the richest Chinese person with his currency
公开资料显示，币安是一家全球性的加密货币交易所，为超过100种加密货币提供交易平台。2018年four月，币安每秒1four0万次的交易能力吸引了600万用户，Make it the world's largest cryptocurrency exchange.
The English name of "Binance" is based on the combination of the word binary and finance, providing more than 150 cryptocurrency transactions, including Bitcoin, Ethereum, Litecoin and its BNB token.
Zhao Changpeng, the founder of Coin An, has already become a well-known figure in the "Coin Circle". Zhao Changpeng was born in Lianyungang, Jiangsu and is a Chinese Canadian entrepreneur. At the end of 2021, against the backdrop of the surge in cryptocurrencies such as Bitcoin,赵长鹏当时曾凭借9four1亿美元（约合63four8亿元人民币）身家荣登华人首富，同时也跻身世界十大富豪，扬名全球。
Although the circle often jokingly says, 'Playing with coins returns to Zhao', which means that the coins in the hands of individual investors will eventually enter Zhao Changpeng's pocket. But under the light of cryptocurrencies in the past, there are still people who, with dreams of wealth freedom, plunge into this bizarre world and benefit a lot, feeling that instant wealth is already achievable.
However, as the global tightening trend intensifies, risky assets bear the brunt, and cryptocurrencies face tightening scrutiny from regulatory agencies in various countries.
Since the end of 2021, Bitcoin has been consistently declining (Image source: Yahoo Finance)
The Daily Economic News reporter noticed that this is not the first time that Coin An has been investigated by US regulatory agencies - according to Bloomberg, in June 2022, the SEC investigated whether Coin An's initial token issuance (ICO) in 2017 involved a violation of securities laws.
Furthermore, this is not the first time that CFTC has taken a stab at cryptocurrency exchanges - Reuters reported that last year, CFTC also filed a lawsuit against BitMEX, one of the world's largest cryptocurrency derivatives exchanges, demanding that it stop its US commodity derivatives business.
Daily Economic News
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