In the words of CZ, “We have strict policies for anyone with access to private information, such as details of listings, Launchpad, etc. I observe these policies myself strictly. I also never participated in Binance Launchpad, Earn, Margin, or Futures”.
Changpeng Zhao, the CEO of Binance, responded to the CFTC’s lawsuit by denying the claims made by the regulatory agency.
On Monday, the CFTC sued Binance and CZ for alleged violations of federal laws, including the Commodity Exchange Act.
In his official response to the CFTC’s complaint, CZ called the CFTC’s statements an “incomplete recitation of facts." Addressing the CFTC’s claims of him being lax in compliance, Zhao cited that the exchange uses strict KYC and AML standards on its platform.
The CEO of Binance stressed that the exchange uses KYC checks, bank transactions, fingerprints, and other methods to offboard US clients from its global platform.
Furthermore, CZ denied CFTC’s statements about Binance using market manipulation tactics via 300 accounts owned by Zhao. According to Zhao, Binance occasionally “trades” when the firm needs to convert its crypto reserves into fiat or other crypto tokens.
CZ also confirmed that he owns two accounts on Binance, adding,
“Personally, I have two accounts at Binance: one for Binance Card, one for my crypto holdings. I also need to convert crypto from time-to-time to pay for my personal expenses or for the Card.”
Furthermore, Zhao emphasized that Binance enforces a stringent “90-day no trading day rule” for its employees. The rule prevents the firm’s employees from trading their tokens within 90 days of their recent transaction.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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