• Binance CEO Changpeng Zhao has responded to the CFTC charges, denying any wrongdoing on his or the exchange’s part.
• The CFTC accused Zhao of indulging in insider trading and evading KYC (Know Your Customer) regulations.
• In response, Zhao denied the allegations and stated that Binance had implemented a 90-day no-trading rule for all employees as well as KYC controls and regulations.
Binance CEO Responds to CFTC Charges
Binance CEO Changpeng Zhao has responded to the Commodity Futures Trading Commission (CFTC) charges brought against the cryptocurrency exchange. Users ended up withdrawing around $400 million in 24 hours following news of the charges.
Zhao called the accusations „unexpected and disappointing“ and denied any wrongdoing on his or the exchange’s part. He also added that Binance had been cooperating with the CFTC over recent years.
Allegations Against Binance And Zhao
The CFTC hit Binance with a barrage of accusations in a lawsuit, accusing its CEO of insider trading and evading KYC regulations, as well as claims that there were 300 „house accounts“ directly or indirectly owned by him. However, these claims have been flatly denied by Zhao who stressed that Binance does not trade for profit or manipulate markets under any circumstances, while all company revenues are in crypto and need to be converted into fiat from time to time for platform expenses.
No-Trading Rule For Employees
In order to further prove their innocence, Zhao revealed that all employees at Binance were subject to a 90-day no-trading rule which meant that staff could not sell coins within 90 days of their most recent purchase. Additionally, he stated that he himself has two accounts at Binance – one for his card and one for holding crypto – acting as an example of eating “dog food” where companies use their own products/services internally.
KYC Allegations Denied
Furthermore, regarding allegations about evading KYC controls/regulations, Zhao countered by stating that Binance was compliant with current rules in this regard since they require customers to provide valid identity documents when signing up for an account on their platform and before processing transactions involving fiat currency such as USD or EUR transfers.
In conclusion it appears clear that both Changpeng Zhao and Biance have taken solid steps towards ensuring compliance with existing laws while striving towards providing a safe trading environment for its users worldwide