The U.S. Commodity Futures Trading Commission (CFTC) has intensified its investigation on the crypto exchange on possible insider trading and allegations of market manipulation.
CFTC Binance conducted its first investigation on the crypto exchange in the first quarter of the year, and it was reported that this investigation was related to derivatives trading that the crypto exchange is not authorized to do in the USA. According to a recent statement from Bloomberg, the US Commodity Futures Trading Commission (CFTC) is trying to determine whether insider trading and market manipulation has taken place this time around.
US authorities are examining possible insider trading and market manipulation at cryptocurrency exchange Binance https://t.co/qFg9aA5kzG
— Bloomberg Crypto (@crypto) September 17, 2021
The World’s Largest Global Exchange Under Intense Scrutiny
US regulatory authorities are trying to find out if Binance, the world’s largest crypto trading hub, allows insider trading and manipulation of the crypto market. Binance, on the other hand, denies the accusations and states that it takes strict measures against any abuse.
The new investigation is being conducted in secret, according to sources who provided information to Bloomberg on the condition that their names and positions remain confidential. The CFTC is investigating whether Binance or any Binance employees are making any profits by leveraging their customers. Again, according to the information received from the sources, it is reported that the CFTC has reached out to potential witnesses.
According to a Binance statement quoted by Bloomberg, the company; He said it does not allow insider trading, while adhering to strict rules to prevent such abuses, which could damage customers and the exchange’s reputation in the crypto market.
Making the statement, the Binance representative emphasizes that the security team of the exchange is always sure that there is no illegal activity and that if such a situation occurs, the necessary sanctions are applied to those responsible for the incident.
Despite the statements made by Binance on the subject, no response has been received from the CFTC about the investigation so far.