The U.S. Commodity Futures Trading Commission (CFTC) has taken legal action against Binance, a major cryptocurrency exchange, and it's CEO, Changpeng Zhao, alleging a non-compliance with the exchange’s own compliance programs and the solicitation of U.S. users actively. On March 27, the CFTC had filed complaints in the federal court of Illinois claiming that Binance and its CEO had breached eight different articles of the Commodity Exchange Act.

The filing consists of several actions leading to the enforcement of further restrictions, including trading and registration bans. Namely, the CFTC stated that Binance deliberately concealed the locations of their subsidiaries from the regulators, as well as cultivated "VIP" customers from the United States in hopes of earning fees from them. Additionally, the CEO had apparently implemented strategies to prevent money laundering and terror-financing, of which the CFTC took unorthodox notice.

In the midst of all this, Binance CEO Changpeng Zhao released a statement claiming his innocence and that the allegations are false. He also mentioned that the exchange has already frozen over $160 million at the request of law enforcement this year, as well as worked alongside them to tackle down any wrongdoings if they occur. Data given by DefiLlama reveals a move of $318 million egressing the platform within just a day after the accusations were made, suggesting a wave of unfriendly rumors, or FUD, is circulating in the digital asset market.

The outcome of the case will determine whether or not Binance is able to keep their services running in the United States. It's yet to be seen which side will prevail, with CFTC's ominous presence and Zhao's attempts to fight all accusations. All eyes will remain on the situation to see how this heavy accusation of data manipulation and fraud will unfold.



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