Bitcoin falls after CFTC sues crypto exchange Binance for allegedly breaking trading rules

[BumRushDaShow]

Last edited Mon Mar 27, 2023, 07:17 PM - Edit history (1)

Source: CNBC

Cryptocurrencies dropped on Monday morning after the CFTC sued Binance, the biggest crypto exchange in the world, for allegedly violating trading rules. The price of bitcoin slid 3% to $26,955.61, according to Coin Metrics. Ether fell 3.5% to $1,704.56.

In a court filing, the CFTC, or the Commodity Futures and Trading Commission, said Binance violated eight provisions of a commodities trading law “designed to prevent and detect money laundering and terrorism financing.” The lawsuit, which was filed Monday in a federal court in Chicago, has the potential to upend the exchange’s operations.

Dessislava Aubert, an analyst at crypto data provider Kaiko, said although bitcoin’s March rally had already started to slow in the last week, the down move Monday was largely driven by the news about Binance. It’s “the largest crypto exchange and any U.S. regulatory action against it will have huge implications for the industry,” she said.

The CFTC court filing follows a CNBC report on Binance employees who have worked to subvert the exchange’s compliance controls in China. Similarly, CFTC alleges that Binance has instructed its workers and customers to circumvent these controls.

Read more: https://www.cnbc.com/2023/03/27/bitcoin-drops-after-cftc-sues-crypto-exchange-binance-for-allegedly-breaking-trading-rules.html

---

Article updated.

Original article -

Cryptocurrencies dropped on Monday morning after the CFTC sued Binance, the biggest crypto exchange in the world, for allegedly violating trading rules. The price of bitcoin slid 3% to $27,001.05, according to Coin Metrics. Ether fell 3% to $1,708.73.

In a court filing, the CFTC, or the Commodity Futures and Trading Commission, said Binance violated eight provisions of a commodities trading law “designed to prevent and detect money laundering and terrorism financing.” The lawsuit, which was filed Monday in a federal court in Chicago, has the potential to upend the exchange’s operations.

Dessislava Aubert, an analyst at crypto data provider Kaiko, said although bitcoin’s March rally had already started to slow in the last week, the down move Monday was largely driven by the news about Binance. It’s “the largest crypto exchange and any U.S. regulatory action against it will have huge implications for the industry,” she said.

The CFTC court filing follows a CNBC report on Binance employees who have worked to subvert the exchange’s compliance controls in China. Similarly, CFTC alleges that Binance has instructed its workers and customers to circumvent these controls.