CFTC says access to US customers 'is a privilege, not a right,' in aggressive case against Binance that is only just getting started
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- CFTC says case against Changpeng Zhao and Binance is the beginning of an aggressive pursuit.
- Commissioner Caroline D. Pham said the CFTC has no borders when it comes to prosecuting non-US entities.
- Binance and Zhao to pay $4.3 billion in fines.
The last couple of years have been tough for the crypto industry and its leading figures.
And it's not likely there will be relief for the sector anytime soon. At least, that's what policymakers are signaling.
This week, Binance chief Changpeng Zhao joined his former industry rival Sam Bankman-Fried in making headlines for charges against him and his crypto exchange, which included breaching US anti-money-laundering laws.
On Tuesday, Zhao pleaded guilty and left his role as CEO. Binance is set to pay over $4.3 billion in fines, $50 million of which will be paid by the former CEO himself. A portion of that will go to settle claims made by the Commodity Futures Trading Commission for allowing US customers to trade unregistered crypto derivatives.
A statement made by CFTC Commissioner Christy Goldsmith Romero read: "There are no pirate ships in US markets" and that "access to US customers is a privilege, not a right."
Goldsmith added that the CFTC plans to continue its aggressive pursuit of crypto exchanges that violate trade laws.
The commissioner noted that there will be no tolerance for using VPNs, or any other actions that could circumvent KYC rules, including pop-up questions that merely ask users to attest that they aren't based in the US.
In a separate statement, CFTC Commissioner Caroline D. Pham said the CFTC's reach has no border. "It should be crystal clear that the CFTC will not stop in its pursuit of non-U.S. entities," Pham said.
The swift action comes amidst a prolonged case set against FTX-founder SBF, who pleaded not guilty and was charged with seven felony counts, including conspiracy to commit money laundering. He remains at New York's Metropolitan Detention Center awaiting his sentencing. He could face up to 110 years in prison.