Binance said it’s not trading aggressively against its clients after a complaint by the U.S. Commodities Futures Trading Commission alleged the exchange violated compliance rules.
A Monday complaint against the largest crypto exchange and its CEO, Changpeng Zhao, sent ripples through the crypto market — with the CFTC accusing Binance of violating laws “designed to prevent and detect money laundering and terrorism financing.”
“For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance,” commented CFTC Chairman Rostin Behnam.
The exchange — known for its itinerant nature, historically jumping from jurisdiction to jurisdiction — holds regulatory licenses in France, Italy and Abu Dhabi, among others.
As for the complaint, it alleges that Zhao is connected to more than 300 separate Binance accounts that “have engaged in proprietary activity on the Binance platform.” It adds that Binance has not disclosed in its terms of service that it is trading on its own market.
‘Hunted user stops’
In response to a whimsical tweet about crypto exchange’s market-making operations, Binance chief strategy officer Patrick Hillmann suggested its internal trading was above board, noting that “unlike other exchanges, Binance does not, nor ever has, hunted user stops or liquidation prices.” He added: “Any trades made are primarily algorithmic for market stability purposes or to reduce slippage.”
Hillmann also said that Binance does not aggressively trade against its users — a “huge difference” with the operations of now-bankrupt Alameda Research.
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Source: https://www.theblock.co/post/223217/binance-trade-against-users-patrick-hillmann?utm_source=rss&utm_medium=rss