Interface News Reporter | Si LinweiOn March 28th Beijing time, the United States Commodity Futures Trading Commission (CFTC) sued Zhao Changpeng, the founder of the cryptocurrency exchange, for intentionally providing unregistered cryptocurrency derivatives in the United States in violation of federal law.The lawsuit was filed on Monday in the District Court of the Northern District of Illinois in the United States, accusing Jin'an of operating derivatives trading business in the United States, providing cryptocurrency transactions, including Bitcoin (BTC), Ethercoin (ETH), Litecoin (LTC), and ther (USDT) and Jin'an USD (BUSD), which were called commodities in the lawsuit
Interface News Reporter | Si Linwei
On March 28th Beijing time, the United States Commodity Futures Trading Commission (CFTC) sued Zhao Changpeng, the founder of the cryptocurrency exchange, for intentionally providing unregistered cryptocurrency derivatives in the United States in violation of federal law.
The lawsuit was filed on Monday in the District Court of the Northern District of Illinois in the United States, accusing Jin'an of operating derivatives trading business in the United States, providing cryptocurrency transactions, including Bitcoin (BTC), Ethercoin (ETH), Litecoin (LTC), and ther (USDT) and Jin'an USD (BUSD), which were called commodities in the lawsuit. The lawsuit also alleges that the company, led by Zhao, instructed its employees to cheat their positions by using virtual private network.
CFTC accuses Coin An of violating laws regarding the provision of futures trading, "illegal over-the-counter commodity options," not registering as a futures commission merchant, designating contract markets or swap execution facilities, inadequate supervision of its business, failure to implement KYC or anti money laundering processes, and inadequate anti tax evasion plans.
Subsequently, Zhao Changpeng, the founder of Coin An, responded to the matter. In a statement on the official website, Zhao Changpeng said, "Today, despite our cooperation with CFTC for more than two years, CFTC has filed an unexpected and disappointing civil complaint. After preliminary examination, the complaint seems to contain incomplete factual statements, and we do not agree with the characterization of many of the issues alleged in the complaint
Zhao Changpeng stated that no other company has used a more comprehensive or effective system to meet regulatory requirements than Coin An. He stated that Coin An is the first global (non US) exchange to implement a mandatory KYC program and remains one of the highest standards for KYC and AML today.
Meanwhile, Zhao Changpeng stated that Coin An has a 90 day ban on daily trading rules for employees, which means that employees are not allowed to sell tokens within 90 days after their last purchase, and vice versa. At the same time, Coin An also prohibits employees from engaging in futures trading. Zhao Changpeng emphasized that he himself strictly adheres to these policies. I have never participated in products such as Coin An Launchpad, Earn, Margin, or Futures.
After the CFTC filed a lawsuit, the price of Bitcoin fell by about $1000 to reach the $27000 level, while the exchange token BNB of Coin An fell by about 3%. Stocks related to cryptocurrencies have also started to decline.
According to CFTC, this global exchange with branches in the United States has created a system to hide its true influence. Coin An intends to rely on numerous corporate entities to operate the Coin An platform, with the aim of concealing ownership, control, and location of the Coin An platform, "the document released by CFTC stated, adding that" Zhao Changpeng is only responsible to himself
In a press release, Gretchen Lowe, the Chief Legal Advisor of CFTC, referred to the actions of Coin An as "intentional evasion of US law", referring to the internal chat records and emails held by Coin An.
US regulatory agencies have recently imposed high pressure regulation on cryptocurrency companies. On March 23, Beijing time, the Securities and Exchange Commission (SEC) officially sued Justin Sun, the founder of Tron and a member of Huobi's global advisory board, on charges of illegal securities sales, fraud, and market manipulation, and filed separate charges against supporters of its cryptocurrency assets.
At present, in the regulatory system of the United States, the Securities Regulatory Commission (SEC) is in charge of investor and securities related businesses, and the Commodity Futures Trading Commission (CFTC) is in charge of commodity and futures related businesses. They regulate cryptocurrency in parallel, but there are also differences. The Chairman of the Securities Regulatory Commission (SEC) believes that cryptocurrencies other than Bitcoin are all securities and fall within the scope of SEC regulation. However, in the statement of CFTC, Bitcoin, Ethereum, Litecoin, etc. are commodities and should fall within the scope of CFTC regulation.
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