US continues to haunt Binance as investigations expand into insider trading

Karthik Subramanian

Binance, the embattled crypto exchange that has been at loggerheads with various regulators around the world, is now being investigated for insider trading and market manipulation.

binance

The exchange launched right at the beginning of the crypto trading boom and quickly expanded into many countries with scant regard for compliance and regulations. At that time, the regulations surrounding crypto were pretty much nil and Binance used it to its advantage to expand very quickly with no setup or presence in most of the countries that it operated in. But that seems to have caught up with it now as the regulators in the US and around the world have started to keep a very strict and watchful eye on the crypto industry as they now finally realize that the industry is here to stay.

The investigation from the SEC, initially, centered around whether the exchange allowed the citizens of the US to trade cryptos and securities at the exchange. If proved, then this would be wrong as Binance does not have a license to allow this in the US. The current review is by the Commodity Futures Trading Commission and other government watchdogs which are seeing whether the access that Binance employees had on trading data, which includes access to view millions of trades made by users, was unfairly used by them to trade on these positions or take advantage of the same.

Though no charges have been made on Binance yet, ever since the investigations began, it is yet another story in the long-running saga where Binance has been taken to task by regulators and has been forced to shut shop in many countries like the UK, Malaysia, Hong Kong, etc due to the lack of licensing and compliance. Users have also been warned by the regulators to stay away from Binance to ensure that their funds are safe.

Binance, on its part, has been desperately trying to save itself from this mess by appointing CEOs for each country that it is looking to operate it and trying to set up a structure that would keep the regulators happy and also by bringing in staff who are highly experienced with regulations, as part of their leadership team to enhance the image of the exchange. Whether this would be enough for it to save face and continue to remain as one of the biggest crypto exchanges is something that only time will tell.

  • Read this next

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    Market News

    Bitcoin stalls at $53,000 level, Ethereum reaches $3,000

    Bitcoin (BTC) faced renewed resistance at the crucial $53,000 level on Tuesday, indicating that the primary cryptocurrency is likely to continue consolidating before making its next decisive move.

    Digital Assets

    UK targets new laws for stablecoins and crypto staking within six months

    The United Kingdom is gearing up to enact fresh legislation regulating stablecoins and crypto staking within the next six months.

    Web3

    Masa’s Milestones Before Mainnet Launch

    Since its launch in August 2022, Masa, the premier decentralized network for personal data, has experienced rapid growth, securing over 1.2 million unique wallets and accumulating more than 23 million data points. Despite a bear market, the network has attracted over 40,000 node operators to its testnet within just 18 months.

    Digital Assets

    Web3 Greatest Startup Competition Hits $10M in Prizes

    We’re thrilled to announce the return of the highly anticipated Startup Competition at Paris Blockchain Week. With a staggering array of prizes totaling over $10 million, encompassing funding, grants, credits, accelerations, listing, and more, this competition has become a cornerstone event within the blockchain startup ecosystem.  

    Digital Assets

    Hedge fund Tyr Capital faces dispute over exposure to FTX

    Crypto hedge fund Tyr Capital found itself embroiled in a dispute with one of its clients concerning its investment exposure to the bankrupt digital assets exchange FTX, as reported by the Financial Times on Tuesday.

    Retail FX

    Plus500 revenue down to $725 million, unveils $100M share buyback

    Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today reported its 2023 results, which came “significantly ahead” of analysts’ estimates.

    Education

    Strategies for Profiting from Interest Rate Fluctuations

    The world of Forex trading is a complex and dynamic domain where interest rates play a pivotal role in shaping currency values. Octa’s team of financial experts delves into this intricate relationship, providing traders with a comprehensive understanding and strategies to harness economic indicators for enhanced trading performance.

    <