US officials now investigating Binance for potential insider trading, market manipulation: report
September 18, 2021, 7:45AM EDT
1 min read
Bloomberg reported Friday that a broad U.S. government investigation into the operator of crypto exchange Binance has widened to include "whether Binance or its staff profited by taking advantage of its customers."
Citing anonymous sources, the outlet said that U.S. officials including the Commodity Futures Trading Commission are investigating the exchange operator for "possible insider trading and market manipulation." In recent months, Bloomberg has covered what officials say is a wide-ranging inquiry into Binance, encompassing efforts from the Internal Revenue Service and the Department of Justice as well as the CFTC.
Bloomberg further reported Friday that the CFTC has been contacting "potential witnesses" as part of the new inquiry area.
The news comes amid Binance's efforts to shore up its compliance and regulatory efforts. Last month, Binance moved to enforce mandatory KYC on its user base. The exchange operator framed the decision as part of a process to "determine changes and improvements in light of evolving global compliance standards."
On Friday, Binance hired former Europol dark web specialist Nils Andersen Röed to serve as its senior director of audit and investigations.
"His focus will be on conducting and leading internal and external investigations with the purpose of identifying bad actors that attempt to commit crimes on Binance's platforms and to protect users' funds, as well as proactively supporting law enforcement agencies with their investigations," Binance said in a press statement.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.