United States of America: Announced public lawsuit involving alleged illegal operation of digital asset derivatives exchange (CFTC v Binance)

On 27 March 2023, the United States Commodity Futures Trading Commission (CFTC) filed a public lawsuit against Binance, alleging that it operates an illegal digital asset derivatives exchange. The CFTC alleges that Binance offered and executed, since 2019, commodity derivatives transactions on behalf and for persons established in the United States without registering with the CFTC. Furthermore, the CFTC claims that Binance allowed the use of its trading platform and offered its services without requiring customers to provide data regarding their identity and failed to implement measures detecting and preventing money laundering and terrorist financing. Finally, the CFTC alleged that Binance offered customers based in the United States information on how to circumvent its compliance controls. The CFTC asked the court for disgorgement, permanent trading and registration bans, monetary penalties and a permanent injunction against Commodity Exchange Act and CFTC regulations violations.