Binance Comes Under Investigation from CFTC Over Market Manipulation

19 September 2021 | Updated: 19 September 2021

Binance continues to fall on the wrong side with regulatory authorities across the globe, despite increased efforts to be of best practice. Reports show that US authorities are probing the behemoth cryptocurrency exchange for insider trading and market manipulation.

While this new probe comes from the Commodity Futures Trading Commission (CFTC), the Justice Department (DOJ) and the Internal Revenue Service (IRS) both have investigations on separate issues against Binance.

Bloomberg reported on Friday that US regulatory authorities are investigating Binance for possible insider trading and market manipulation to determine whether the company or its staff profits at the expense of its customers. Commenting on the issue, Binance noted that:

“At Binance, we have a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry.”

Bloomberg’s report also revealed that Commodity Futures Trading Commission investigators have reached out to several potential witnesses over the last few weeks. The CFTC already has a pending probe investigating whether Binance allows US residents to buy or sell Bitcoin-linked derivatives and order crypto derivatives, which the body deems illegal considering that Binance has not registered with it.

DOJ and IRS Investigate Binance Over Money Laundering and Tax Invasion

Meanwhile, Bloomberg reported that the US Department of Justice and the Internal Revenue Service recently launched separate criminal investigations to ascertain if the giant exchange serves as a conduit for money laundering and tax evasion.

That said, the firm has no solid accusation of wrongdoing, and these investigations may not lead to any legal or official actions.

More and more regulators across the globe continue to issue warnings against Binance for illegal operations in their jurisdictions. These include regulators in the UK, Japan, Thailand, Malaysia, Hong Kong, Singapore, Netherlands, Germany, Lithuania, and South Africa.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.