The US Commodity Futures Trading Commission (CFTC) has initiated an investigation against Binance over alleged insider trading, Bloomberg reports, citing sources close to the agency. The regulator has reportedly been looking for potential witnesses regarding the matter over the past few weeks.
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"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 exchange told Bloomberg.
This is not the first time Bloomberg reports about CFTC's investigation against the exchange. Earlier in March, the CFTC reportedly initiated an investigation against Binance to find out whether the exchange had broken rules by permitting Americans to trade on its platform, which is not registered with the agency.
In 2020, the CFTC also charged BitMEX owners with "illegally operating a cryptocurrency derivatives trading platform and anti-money laundering violations." The watchdog said BitMEX had violated laws by operating an unregistered trading platform.
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