Binance CEO Changpeng ‘CZ’ Zhao has rejected allegations from the Commodities Futures and Buying and selling Fee grievance, arguing the corporate “doesn’t commerce for revenue or ‘manipulate’ the market underneath any circumstances.”
The chief government shared his first official response to the lawsuit in a March 28 weblog put up.
The CEO argued that whereas Binance “trades” in various conditions, that is primarily to transform them “from time-to-time” to cowl bills in fiat or different cryptocurrencies, as its revenues are in crypto.
“Personally, I’ve two accounts at Binance: one for Binance Card, one for my crypto holdings. I eat our personal pet food and retailer my crypto on Binance.com. I additionally have to convert crypto occasionally to pay for my private bills or for the Card.”
My Response to the CFTC Grievance | Binance Weblog https://t.co/TadyotM7HN
— CZ Binance (@cz_binance) March 27, 2023
Zhao additionally famous that Binance has a 90 day no-day-trading rule for workers, including:
“That is to stop any staff from actively buying and selling. We additionally prohibit our staff from buying and selling in Futures.”
He went additional to state that staff are restricted from shopping for or promoting cash the place they’ve obtained “personal data” about them.
“I observe these insurance policies myself strictly. I additionally by no means participated in Binance Launchpad, Earn, Margin, or Futures. I do know the most effective use of my time is to construct a stable platform that providers our customers,” he add
Zhao known as the latest CFTC submitting each “sudden and disappointing,” because it had been working cooperatively with the regulator for over two years. He additionally famous that the grievance “seems to include an incomplete recitation of information.”
Concerning the compliance allegations, CZ says Binance.com has developed “best-in-class” know-how to make sure compliance and presently has greater than 750 individuals working to make sure their enterprise operates inside the bounds of anti-money laundering (AML) and know your consumer (KYC) legal guidelines:
“Thus far, we’ve got dealt with 55,000+ LE requests, and assisted US LE freeze/seize greater than $125 million in funds in 2022 alone and $160 million in 2023 to date.”
Associated: CFTC calls ETH a commodity in Binance swimsuit, highlighting the complexity of classification
CZ additionally identified that Binance.com holds 16 licenses to supply digital asset buying and selling providers, essentially the most of any cryptocurrency buying and selling platform.
This can be a creating story, and additional data will probably be added because it turns into obtainable.