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U.S. BNB Investigates Insider Trading

Holdings Ltd. investigations by the U.S. have been extended and the regulators are inspecting possible insider trading and manipulation of the market.

U.S. BNB Extends Investigation Into Possible Insider Trading iBase Trading.
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Holdings Ltd. investigations by the U.S. have been extended and the regulators are inspecting possible insider trading and manipulation of the market. The scrutiny faced by the biggest cryptocurrency in the world is increasing.

U.S. officials are investigating if Binance or its staff benefited by taking advantage of its customers as part of the analysis. They also stated that people who know about the situation asked to remain anonymous as the investigation is confidential. The Commodity Futures Trading Commission investigators approaches possible witnesses. Moreover, the reviews involves these investigators.


Binance controls an immense trading operation where digital tokens worth tens of billions of dollars are bought and sold by daily clients outside the government watchdogs’ supervision. However, it is not based in any country. The exchange gives a view into millions of transactions. In addition, the firm also utilizes the access. This includes exchanging user orders before performing them. However, U.S. authorities questions this. As stated by a Binance spokesperson, the firm has a policy of extreme intolerance for insider trading and a strict ethical code. This is in order to avoid any felony that could possibly hurt the customers or the industry of crypto.

The spokesperson also added that Binance’s security team has well-established guidelines for examining any misconduct and holding workers countable. Keeping in mind the minimal consequence of termination.

Constraints on Compliance

According to Bloomberg’s report, compliance has always been a problem for Binance and for Changpeng Zhao, Binance’s outspoken founder.  A large number of nations asks the company and affiliates to stop offering services within their borders. This is because they lack proper licenses.  The Justice Department and Internal Revenue Service in the U.S. initiated the Criminal investigations. This is to further examine whether Binance has been a channel for tax evasion and money laundering.

The investigations are unlikely causing any official action. Investigators are not charging Binance any misconduct.  The CFTC and the Justice Department investigates the firm for months. It could take some time before the the agencies decides the enforcement actions.

The rapid growth of crypto has been watched with alarm by Washington and this brings worry from the Treasury Department to the Federal Reserve and the Securities and Exchange Commission as the market is the focus of illegal activity and firms are turning into traditional financial services without consumers’ protection.

In conclusion

The company was already being queried by the CFTC . It is about whether it allowed residents of the U.S. to buy and sell derivatives connected to Bitcoin and other virtual tokens.

One of the people said that the CFTC searches the internal Binance data and communications.  Thiscould possibly show a firm attempting to sign up U.S. customers. This regularly reports its findings to other federal agencies. Binance blocks Americans trading derivatives. The CFTC regulates this derivatives. The U.S. authorities did not register this platform.

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Tanya Smith is an editor at iBaseTrading. With M.A. in Journalism and Mass Communication, she is pursuing her dream of creating a positive difference in the media industry. She also enjoys Fashion and Travelling.