Binance and its CEO Changpeng Zhao (CZ) are facing a lawsuit from the United States Commodity Futures Trading Commission (CFTC) over trading violations, according to a report by Bloomberg.
The lawsuit was filed in the U.S. District Court for the Northern District of Illinois. The CFTC alleges that Binance failed to meet its regulatory obligations by not registering properly with the derivatives regulator.
Binance has been under investigation by the CFTC since 2021, and the exchange acknowledged in February that it was likely to face regulatory action in the United States, and had already been working with regulators.
Apart from the CFTC, Binance has been under investigation by the Internal Revenue Service and federal prosecutors for compliance with anti-money laundering regulations.
Additionally, the Securities and Exchange Commission has been examining whether Binance allowed U.S. traders to access unregistered securities.
