Binance Caught in the Crossfire: CFTC Lawsuit Aimed at SEC?
- Eleanor Terrett shares that her sources indicate the SEC would file a similar lawsuit against Binance in response to the CFTC’s lawsuit.
- On March 27, the CFTC filed a lawsuit against Binance claiming it traded on its own exchange using 300 accounts connected to Binance CEO CZ.
Ben “BitBoy Crypto” Armstrong tweeted his opinion on the Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance. Armstrong believes that the CFTC’s lawsuit is more of a slight against the U.S. Securities Exchange Commission (SEC) rather than against Binance.
In a previous tweet, Armstrong shared a screenshot of details regarding the CFTC lawsuit. The screenshot showed that the CFTC considers bitcoin (BTC), ether (ETH), litecoin (LTC), tether (USDT), and Binance USD (BUSD) as commodities.
Notably, this is a contrast to the SEC’s stance on the matter. The SEC publicly considers cryptocurrencies and digital assets as securities. In detail, the SEC has an ongoing legal battle with Ripple over the accusations that the blockchain developer and creator of the XRP token sold them as unregistered securities to investors.
Fox Business Journalist Eleanor Terrett also tweeted updates regarding the CFTC’s lawsuit against Binance. According to Terrett, sources indicate that there is a possibility that the SEC would file a similar lawsuit against Binance to counter the CFTC’s lawsuit.
On March 27, The CFTC filed a lawsuit against Binance, claiming that the cryptocurrency exchange traded on its own platform using 300 accounts connected to Binance CEO Changpeng Zhao (CZ).
During the Relevant Period, Binance has traded on its own platform through approximately 300 “house accounts” that are all directly or indirectly owned by Zhao (…) Zhao has also traded on the Binance platform through two individual accounts.
Accordingly, Zhao released a statement in response to the allegations. Zhao referred to the civil complaint as “unexpected and disappointing” after more than two years of cooperation with the CFTC. In his response, Zhao detailed only a few key points, noting that a full response will follow in due time.