U.S. probes possible insider trading at Binance - Bloomberg News https://www.reuters.com/business/us...er-trading-binance-bloomberg-news-2021-09-17/ Sept 17 (Reuters) - U.S. officials are examining possible insider trading and market manipulation at Binance, Bloomberg News reported on Friday, potentially adding more heat to the cryptocurrency exchange that has become a target of regulatory scrutiny in many countries. Authorities are looking into whether Binance or its staff profited by taking advantage of its customers, Bloomberg reported, citing people with knowledge of the matter. "At Binance, we have a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry," the world's biggest crypto platform said in a statement. The company has faced warnings and business curbs from financial watchdogs from Britain and Germany to Japan, who are concerned over the use of crypto in money laundering and risks to consumers. read more The exchange, whose holding company is registered in the Cayman Islands, has scaled back its product offerings and said it wants to improve relations with regulators. The review involves Commodity Futures Trading Commission (CFTC) investigators, who in recent weeks have been reaching out to potential witnesses, the Bloomberg report said, adding that Binance has not been accused of wrongdoing and the investigations may not lead to any official action. The CFTC did not immediately respond to a request for comment.
That is so cute. They are trying to flex their muscles in an unregulated market. "Ok CFTC, let us know when you find out this market is unregulated! Have fun investigating."
Well, since the CFTC oversees the futures, and the CME has BTC futures that are based on the BTC reference price, then perhaps they have a vested interest in how Binance's potential malfeasance may have affected the BTC reference price, which affected the BTC futures price. Just a stab at the dark there on why they may be involved. That's the only connection I can see at the moment.
It's to see if Binance let "U.S. residents to buy and sell derivatives that the regulator polices." https://www.bloomberg.com/news/arti...inance-investigated-by-u-s-over-who-s-trading
Binance has already done everything to cover their asses. If any US residents trade on there it's because they have successfully tricked the system. I believe this is just the CFTC trying to make a dramatic statement to the world that they don't just sit on their asses for nothing. Or this could also be a news report by the CFTC to try to move the price. Everyone already knows Binance plays by the rules. Them doing an investigation to see if any US residents traded just sounds silly.
Binance apparently allows U.S. residents from some states. https://support.binance.us/hc/en-us...es-That-Binance-US-Does-Not-Currently-Support And they do (at least as of last April) offer options. https://www.binance.com/en/blog/421499824684900531/how-to-get-started-with-binance-options So the CFTC might be interested if they allow U.S. residents to trade these options. I would think the worst that could happen to Binance would be a fine and/or more restrictions on U.S. residents.