During the day, the CFTC’s lawsuit against Binance fell like a bomb in the crypto money market. After the news spread, BTC, which fell to $ 26500, continues its volatile movements as of the moment.
The cryptocurrency market, which has been under pressure from the SEC for a while, has been targeted this time by the CFTC wing. While this move of the CFTC was evaluated by many experts, an explanation came from Burak Tamaç.
Burak Tamaç, who posted a tweet with the title “This time it’s not empty”, found a series of explanations on the subject on Twitter.
Tamaç used the following statements on the subject:
Reason for CFTC suing Binance: U.S. person/institutions making derivative crypto transactions.
Why CFTC?
Because the subject falls under the domain of the CFTC (Commodities and Futures Trading Commission), derivatives transactions.
Binance Global is already banned from being used in the US. That’s why BinanceUS was opened, but this case directly targets Binance. The reason for this is that Binance allows individuals and institutions in the USA to use the global stock market. If it is forbidden, how did he give this permission?
A service called VIP Handling has been offered to trading companies in Chicago and New York. These companies are actually prohibited from using it because they are in the USA. But Binance went behind it (with VPN and companies established in other countries) and allowed it. What is the share of these companies?
What is seen in the correspondence: 5 companies account for 12% of all trading volume on Binance. In other words, the largest share of Binance’s volume was made by these companies in the USA. The CFTC, on the other hand, filed a lawsuit because it deemed it illegal.
The courts will decide whether this is legal or illegal. However, this time around, there is no empty smear campaign. There are correspondence and evidence presented to the court. So is there theft like FTX?
There is no information in the evidence presented to the court that Binance used (trades or stole) client funds. Also, there is no such thing as Binance taking too much risk. That’s what happened in FTX. Let’s put the difference clearly.
Under the guise of regulation, two institutions have been swinging their swords for the past two months: 1- SEC 2- Treasury ministry. This time the CFTC was involved.
The risk of regulation in the crypto sector will continue until the end of this year (I have said it many times). I will continue to post as I learn more details.
You can access the full statement from the flood below.
Why was Binance sued?
Is there theft like FTX?
This time it’s not empty 👇
— Burak Tamaç (@burak_tamac) March 27, 2023
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!