CFTC chairman Rostin Behnam answered questions on CNBC after the lawsuit against Binance and CZ. Behnam states that they have clear evidence and that Binance administrators are directly responsible for trading violations.
CFTC Chairman reports ‘clear evidence’ in Binance case
cryptocoin.com As we reported, the US regulator sued Binance, the world’s largest crypto exchange, on Monday. President Rostin Behnam told CNBC on Tuesday that the activity on Binance is a pretty clear example of smuggling and that US authorities should act aggressively and as quickly as possible:
This seemed like a pretty obvious case of tax evasion and something we needed to step up to aggressively and do it as quickly as possible. Because it was an ongoing scam dating back to 2019 and an ongoing violation of the Commodity Exchange Act.
Behnam said that Binance is a joint venture made up of dozens of subsidiaries scattered around the world. He stated that it is clear that control of the venture comes from Binance CEO Changpeng Zhao, and his intention to evade the law is clearly documented.
CFTC will go to court with clear evidence
Behnam said the CFTC is “aggressive” for committing “fraud” and should intervene with Binance as soon as possible. According to the court filing, the exchange is violating “numerous” clauses in the regulator’s commodity law.
Behman told CNBC that not only does this sound like “tax evasion,” but the evidence speaks for itself. “We will vigorously fight this case in court,” he added. Behnam also said that Binance clearly engaged in tax evasion and that they will vigorously defend this case in court.
Why is Binance on trial?
The CFTC lawsuit accuses Binance of not complying with regulatory compliance. It was stated that Binance ignored applicable federal laws while increasing its customer base in the US. The US regulator accuses Binance and its CEO, CZ, of violating commodity exchange and law (CEA) and controlled foreign company (CFC) rules seven times.
Besides the regulatory violations, the lawsuit specifically targets Binance’s US arms Merit Peak and Binance.US. The CFTC claimed that Binance and its affiliates are a joint venture that is the beneficial owner (UBO) and is under the direct control of CZ.
How has the Bitcoin price reacted to Rostin Behnam’s statements?
The CFTC chairman answered questions about the Binance case on CNBC at noon today. Bitcoin price dropped to $26,606.69 after the lawsuit that emerged yesterday evening. At the time of the announcements, it rose by around 2% and exceeded $27,000 again. At the time of writing, it’s moving down again, down 3.5% from the last 24 hours.
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