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Binance’s problems with regulators are escalating as US authorities now reportedly investigate the exchange for possible insider trading and market manipulation. The investigation involves the Commodity Futures Trading Commission (CFTC). The Department of Justice (DOJ) and the Internal Revenue Service (IRS) also investigated Binance on a separate issue.
Binance probed for possible insider trading and market manipulation
U.S. authorities are currently investigating Binance for possible insider trading and market manipulation to determine whether the company or its staff profited from the exploitation of its clients, Bloomberg reported on Friday, citing people familiar with the matter. . Binance was quoted as saying:
At Binance, we have a zero tolerance policy for insider trading and a strict code of ethics related to any type of behavior that could negatively impact our customers or our industry.
The review involves investigators from the Commodity Futures Trading Commission (CFTC), who have contacted potential witnesses in recent weeks, according to the publication. The derivatives watchdog has previously investigated whether Binance allows U.S. residents to buy and sell derivatives related to bitcoin and other cryptocurrencies, which is prohibited since Binance is not registered with him.
In addition to the CFTC, the US Department of Justice (DOJ) and the Internal Revenue Service (IRS) are also investigating Binance. The pair had previously launched criminal investigations into whether the exchange was a vehicle for money laundering and tax evasion, the publication also reported. The company has not been accused of wrongdoing and the investigations cannot lead to any official action.
A growing number of regulators around the world have issued warnings against Binance for its illegal activities in their jurisdictions, including UK, Japan, Thailand, Malaysia, Hong Kong, Singapore, Netherlands, Germany, Lithuania and South Africa.
How do you feel about Binance being investigated for market manipulation and insider trading? Let us know in the comments section below.
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