Binance and founder Changpeng Zhao sued over accusations of trading rules violations

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Binance and founder Changpeng Zhao sued over accusations of trading rules violations
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The filing by the Commodity Futures and Trading Commission may upend the exchange’s operations and could be the first salvo in a regulatory crackdown.

Zed Jameson / Bloomberg via Getty Images fileThe Commodity Futures and Trading Commission filed a complaint against crypto exchange Binance, its co-founder, Changpeng Zhao, and its former chief compliance officer, Samuel Lim, alleging that Binance actively solicited U.S. users and subverted the exchanges own “ineffective compliance program,” according to a filing in Illinois federal court Monday.

Zhao and Lim allegedly “actively cultivated lucrative and commercially important ‘VIP’ customers, including institutional customers, located in the United States,” the complaint said. “Binance is aware of its VIPs’ identities and geographic locations because Binance monitors its sources of transaction volume and fee-based revenue as a matter of course in conducting its operations,” the CFTC complaint alleges.

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