Binance Under Investigation – US Financial Regulator

Binance Under Investigation – US Financial Regulator

US Financial Regulatory Authority might investigate Binance, due to questionable domestic trade. The world’s largest cryptocurrency exchange is under investigation. The US Commodity Futures Trading Commission, CFTC, should launch an investigation of Binance into market manipulation.

A recent report, the sources of which were anonymous, revealed that the US market regulation agency Binance is investigating the trading activities of Binance.

According to Bloomberg, according to part of the investigation, US officials are investigating whether Binance and its employees took advantage of their clients. Investigators from the Commodity Futures Trading Commission, who have been questioning potential witnesses in recent weeks, are taking part in the review.

Speaking about the development process, a Binance spokesperson said they follow the Code of Ethics strictly on the exchange. He said the company has a zero-tolerance policy towards domestic trade and operates by standards that ensure that the risks of misstatement are minimal.

The spokesperson added that those exchange employees who were guilty of the accusation were threatened with liquidation.

Before the investigation, US authorities have previously investigated Binance for money laundering and tax evasion. The study coincides with a period when the stock market goes through regulatory battles worldwide and tries to overcome all pressures.




Binance represents an exchange space for trading more than 100 cryptocurrencies. Since the beginning of 2018, Binance has been one of the largest cryptocurrency exchanges in the world. It has the most total trading volume.

In times of volatility, Binance has experienced several shutdowns of virtual currencies over the years. Changes can be challenging for traders, especially when prices fall. When investors place a risky bet, losses can increase by millions of dollars.

The stock market has recently reduced its maximum leverage. Clients can use financial derivatives that oblige investors to buy an asset at an agreed price.

Binance became the target after the May 19 shutdown made it impossible for users to leave positions. It was the day when Ethereum and Bitcoin posted their most significant one-day drop. As of March 2020, the total value of the crypto market has lost about $1 trillion.

It is interesting to see what the investigation by the US authority will reveal and whether the violations by Binance will be reflected.

The trading business is undergoing many changes daily. We will probably know about the process in a short period. 

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