U.S. Expands Probe into Binance for Suspected Insider Trading and Market Manipulation

Translated by: MOS Translation Team – MG

Bloomberg reported on September 17 that US authorities are expanding their investigations into Binance to review possible insider trading and market manipulation— the latest sign that scrutiny of the world’s largest cryptocurrency exchange is intensifying. As part of the inquiry, U.S. officials have been looking into whether Binance or its staff profited by taking advantage of its customers. The investigators have contacted the potential witnesses during the recent weeks.

Though Binance is not based in any country, it runs millions of transactions. Everyday clients can buy and sell digital tokens worth tens of billions of dollars outside the oversight of governments. U.S. authorities questioned the company’s illegal use of the corresponding authority. More and more countries asked the firm and its affiliates to stop offering services in their countries and claimed that the firm lacks the proper licenses. In July of this year, Binance was also investigated by the authorities in Singapore, Thailand, and the Caymans Islands. In the U.S., the Justice Department and the Internal Revenue Service have launched criminal probes into whether Binance has been a conduit for money laundering and tax evasion.

The Commodity Futures Trading Commission (CFTC) investigation into Binance in Chicago includes whether Binance lets U.S. residents buy and sell derivatives linked to Bitcoin and other virtual tokens. Regarding the firm having tried to sign up U.S. customers, the CFTC members stated that they have sought other federal agencies to share Binance’s internal data and communications. Binance isn’t registered with U.S. authorities, meaning it’s not supposed to trade the U.S.-regulated derivatives.

Washington is shocked by the rapid growth of cryptocurrency. Institutions like the Treasury Department, the Federal Reserve and the Securities and Exchange Commission are increasingly worried that the cryptocurrency market becomes a hotbed of illicit activities. 

Reference: Probe into Binance expands to examine possible insider trading

Proofread: Xiequyuan
Edited: Xiequyuan
Posted by: Xiequyuan

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