Reports have revealed that, authorities are now investigating Binance, the world’s largest cryptocurrency exchange for possible insider trading and market manipulation.
According to a Bloomberg report, U.S officials have been investigating whether Binance or its employees benefited by taking advantage of its customers, the probe is hereby confidential.
The analysis pertains to Commodity Futures Trading Commission (CFTC) investigators, who in recent weeks have been reaching out to potential witnesses, according to an informant.
Binance who runs one of the largest cryptocurrency exchanges by volume of transactions has been under the eyes of financial watch dogs and regulators.
Therefore the U.S authorities are investigating Binance to uncover whether or not the cryptocurrency exchange exploited that access, including by trading on customer orders before executing them.
Binance as always has spoken up claiming that there is no foul play on their exchange and dealings in a statement.
A spokesperson for Binance said the firm has a “zero-tolerance” policy for insider trading and a “strict ethical code” to prevent any misconduct that could hurt its customers or the crypto industry. The spokesperson also added that Binance’s security team has long-standing guidelines for investigating wrongdoing and holding workers accountable, with termination being the minimal wages.
Although Binance claims to take strict measures against any misconduct, still yet U.S. regulatory authorities are still eager on finding out faults from the world’s biggest crypto trading platform.
Over time Binance has become the focus of many other regulators worldwide, including those in the U.K, Netherlands, Thailand, Malaysia, Japan, Germany, Hong Kong, Lithuania, and South Africa, as they claimed that Binance had been running without approval in their jurisdictions. Japan, Germany, U.K. and the Canadian province of Ontario all cracked down on Binance exchange offerings a few months ago. The most recent country is South Africa whose financial watchdog warned its citizens that Binance is not authorized to operate in the country. Before this probe, the U.S Justice Department and Internal Revenue Service have launched criminal probes into whether Binance has been a conduit for money laundering and tax evasion, nairametrics revealed.
Amidst the setbacks from financial Regulators, The great Exchange is still scaling above drawbacks as their native token BNB is currently trading at $410, down 2% for the day, as of the time of this post.