Report – Swap

Binance's problems with regulators are increasing as US authorities are now reportedly investigating the exchange for possible insider trading and market manipulation. The Commodity Futures Trading Commission (CFTC) is involved in the investigation. The Department of Justice (DOJ) and the Internal Revenue Service (IRS) have also investigated Binance on a different issue.

Binance investigated for possible insider trading and market manipulation

U.S. authorities are now investigating Binance for possible insider trading and market manipulation to determine whether the company or its employees benefited from exploiting its customers, Bloomberg reported on Friday, citing people familiar with the matter. Binance was quoted as saying:

At Binance, we have a zero-tolerance policy for insider trading and a strict code of ethics regarding any type of behavior that could negatively impact our customers or our industry.

The review involves investigators from the Commodity Futures Trading Commission (CFTC), who have been contacting potential witnesses in recent weeks, the release said. The derivatives watchdog has already investigated whether Binance allows US residents to buy and sell derivatives linked to Bitcoin and other cryptocurrencies, which is prohibited because Binance is not registered with it.

In addition to the CFTC, the US Department of Justice (DOJ) and the Internal Revenue Service (IRS) are also investigating Binance. The two previously launched criminal investigations into whether the exchange was a conduit for money laundering and tax evasion were also reported by the publication. The company is not accused of any wrongdoing and the investigation may not lead to official action.

A growing number of regulators worldwide have warned Binance for illegal activity in their jurisdictions, including the UK, Japan, Thailand, Malaysia, Hong Kong, Singapore, the Netherlands, Germany, Lithuania and South Africa.

What do you think about Binance being investigated for market manipulation and insider trading? Let us know in the comments section below.

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