The largest crypto exchange, Binance, is once again being investigated by U.S authorities. Bloomberg reported recently that the U.S officials are investigating Binance on the allegation of possible market manipulation and insider trading. Binance, being a crypto-asset exchange, is already facing a lot of regulatory scrutinization in various other countries and this latest case against them certainly adds a lot more heat on the crypto exchange.
Market Manipulation by Binance
The main concern being investigated by the authorities of the United States is that if the crypto exchange or its staff members manipulated and took advantage of its customers just to make profits for themselves. The article published by Bloomberg cited a lot of anonymous sources, who have the necessary knowledge and proof of this wrongdoing, but their identities were kept confidential so that they could be protected. One of those informants also told that the CFTC, also known as the investigators of Commodity Futures Trading Commission, have called out a lot of potential witnesses to strengthen their case in the past few weeks.
Binance is one of the biggest crypto exchanges in the world, which means that there are millions of crypto transactions every day which the crypto exchange has access to, and they can easily use that information for their own profit. This is the reason why U.S officials are questioning the credibility of the exchange platform so they can find out if they are exploiting their customers. This also includes trading your assets on the intel of your customers before executing their orders.
Binance issued a public message and defended their stance by saying that the company has a strict no-tolerance policy in terms of insider trading, also a very rigid ethical code that prevents any kind of behavior by the staff that might have a negative impact on the customers or the overall industry. Binance also stated that their security team is very active in investigating any suspicious activities, whether they are done by the customers or the staff. They also take very strict actions if an employee is found guilty of any wrongdoing and the company terminates them in an instant.
Binance has been facing a lot of regulatory issues worldwide. Countries like Malaysia, UK, Thailand, Hong Kong, Singapore, and Italy have also placed many restrictions overtime on Binance.