Binance CEO Changpeng Zhao (CZ) has addressed the allegations against him by the US Commodity Futures Trading Commission (CFTC). “We do not agree with the characterization of many of the issues alleged in the complaint,” the executive stressed.
CZ responds to CFTC accusations
The CEO of cryptocurrency exchange Binance, Changpeng Zhao (CZ), published a blog post on Monday to address the civil enforcement action against him and his cryptocurrency exchange by the US Commodity Futures Trading Commission. USA (CFTC). The US regulator charged Zhao and three entities operating the Binance platform “with numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations.”
Noting that the CFTC’s civil complaint against him and Binance was “unexpected” and “disappointing,” Zhao explained:
Upon initial review, the complaint appears to contain an incomplete statement of facts, and we disagree with the characterization of many of the issues alleged in the complaint.
“We will only be able to give full answers in due time,” CZ noted, and proceeded to address a few key points. First, he stated that “Binance.com has developed best-in-class technology to ensure compliance,” adding: “We block US users based on nationality (KYC), IP (including endpoints of Commonly used VPN outside the US), device fingerprinting, bank deposits and withdrawals, blockchain deposits and withdrawals, credit card container numbers, and more.”
The executive emphasized that his crypto company is “committed to transparency and cooperation with regulators and law enforcement (LE)” both in the US and globally, explaining:
Binance currently has over 750 people on our compliance teams, many with prior experience in law enforcement and regulatory agencies.
He added that to date, Binance has handled more than 55,000 law enforcement requests and helped US authorities freeze and seize more than $125 million in funds in 2022 and $160 million in 2023 so far. “We intend to continue to respect and collaborate with US regulators and others around the world,” CZ emphasized, adding that “Binance.com has the most licenses/registrations globally, 16 and counting. “.
After revealing that he personally has two accounts on Binance, one for Binance Card and one for his cryptocurrencies, Zhao asserted that Binance.com does not engage in profit trading or market manipulation. “Binance.com has a 90-day no-trade rule for employees, which means you are not allowed to sell a coin within 90 days of your most recent purchase, or vice versa,” he further shared. “We also prohibit our employees from trading futures. Additionally, we have strict policies for anyone with access to private information such as listing details, Launchpad, etc. They are not allowed to buy or sell those coins.”
The Binance boss concluded:
I strictly observe these policies. I have also never participated in Binance Launchpad, Earn, Margin or Futures.
What do you think of Binance CEO Changpeng Zhao’s response to the CFTC’s allegations? Let us know in the comments section.
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