Gadget

US investigations into Binance are reportedly expanding to investigate insider trading.

Binance is clearly facing more Regulatory pressure About possible abuse on the cryptocurrency exchange. Bloomberg sauce US officials said they have expanded Binance’s investigation to include the possibility of insider trading and market manipulation. The company has not been accused of fraud, but investigators on the Commodity Futures Trading Commission ask potential witnesses about issues such as the location of the Binance server (and therefore whether the United States can pursue any case). It is reported that it was.

The Commission had previously begun an investigation into the sale of derivatives associated with cryptocurrencies. We are allegedly looking for internal Binance data that may indicate the sale of these derivatives to US customers and violate regulations prohibiting the sale without registration. The Internal Revenue Service and the Department of Justice are also investigating the potential for money laundering on exchanges.

There is no guarantee of behavior. The CFTC and the Justice Department have probably been investigating Binance for several months, and the decision may take a little longer.

Not surprisingly, Binance said it was on the board.A spokeswoman said Bloomberg The exchange had a “zero tolerance” approach to insider trading and ethical and security guidelines to prevent those actions. The company added that it would dismiss criminals at a minimum. The CFTC declined to comment.

Binance’s close scrutiny, if accurate Larger US crackdown About cryptocurrencies. Authorities are concerned that a lack of consumer protection (including regulation) can hurt customers who sign up for services in the hope of the same protections as traditional money. In this case, the focus is accountability — insider trading can destroy valuable investments and undermine confidence in Binance and other crypto exchanges.

All Engadget recommended products are selected by an editorial team independent of the parent company. Some stories include affiliate links. If you buy something through any of these links, you may earn affiliate commissions.

https://www.engadget.com/binance-insider-trading-probe-184903656.html?src=rss US investigations into Binance are reportedly expanding to investigate insider trading.

Back to top button