Global crypto exchange Binance is reportedly under investigation in the US for possibly engaging in insider trading and market manipulation.
Citing anonymous sources with knowledge of the matter, Bloomberg reports the Commodity Futures Trading Commission (CFTC) is currently probing whether Binance or its staff took advantage of its customers to generate profits.
According to Bloomberg, the exchange has access to view millions of transactions and the CFTC is questioning if the firm capitalized on that information by front running customer orders. The report highlights that Binance runs an immense trading operation where customers buy and sell crypto assets to the tune of tens of billions of dollars outside the purview of government regulators.
Bloomberg also notes that the CTFC recently asked potential witnesses about the location of Binance’s data servers, suggesting that the US regulator may be looking into whether or not it has jurisdictional authority over the exchange.
Binance is not yet formally accused of committing any wrongdoing, and it is not clear if the probe will lead to an official action.
A Binance spokesperson says that the exchange has a “zero-tolerance” policy for insider trading and assures that the company observes a strict ethical code to protect customers and the broader crypto industry.
The spokesperson adds that any offending workers will be held accountable and face a minimum consequence of termination.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/wacomka
