Binance Under Investigation by US Authorities for Possible Insider Trading: Report
Global crypto exchange Binance is reportedly under investigation in the US for possibly engaging in insider trading and market manipulation.
Citing anonymous sources with knowledge of the matter, Bloomberg reports the Commodity Futures Trading Commission (CFTC) is currently probing whether Binance or its staff took advantage of its customers to generate profits.
According to Bloomberg, the exchange has access to view millions of transactions and the CFTC is questioning if the firm capitalized on that information by front running customer orders. The report highlights that Binance runs an immense trading operation where customers buy and sell crypto assets to the tune of tens of billions of dollars outside the purview of government regulators.
Bloomberg also notes that the CTFC recently asked potential witnesses about the location of Binance’s data servers, suggesting that the US regulator may be looking into whether or not it has jurisdictional authority over the exchange.
Binance is not yet formally accused of committing any wrongdoing, and it is not clear if the probe will lead to an official action.
A Binance spokesperson says that the exchange has a “zero-tolerance” policy for insider trading and assures that the company observes a strict ethical code to protect customers and the broader crypto industry.
The spokesperson adds that any offending workers will be held accountable and face a minimum consequence of termination.
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The post Binance Under Investigation by US Authorities for Possible Insider Trading: Report appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
