Binance regulatory troubles have now spread to the US. A recent Bloomberg report highlighted that the US Commodity Futures Trading Commission (CFTC) is now investigating the crypto exchange over allegations of possible insider trading and market manipulation.
U.S. authorities are examining possible insider trading and market manipulation at cryptocurrency exchange Binance https://t.co/qFg9aA5kzG
— Bloomberg Crypto (@crypto) September 17, 2021
People familiar with the matter and who preferred not to have their names and titles mentioned told Bloomberg that this new investigation is being conducted confidentially. The CFTC is investigating whether Binance or any of its employees have made any profit by leveraging their clients.
In a Binance statement mentioned by Bloomberg, a Binance representative said that the company does not tolerate insider trading and follows a strict code to avoid any misconduct that could harm the exchange’s customers and damage its reputation in the crypto market.
According to the representative, Binance’s security team always makes sure that no crime occurs or, if it does, the wrongdoers are held responsible for it.
So far no comment has been obtained from the CFTC in this regard.