Bitcoin falls after CFTC sues crypto exchange Binance for allegedly breaking trading rules

[BumRushDaShow]

Last edited Mon Mar 27, 2023, 08:17 PM - Edit history (1)

Source: CNBC

Cryptocurrencies dropped on Monday morning after the CFTC sued Binance, the biggest crypto exchange in the world, for allegedly violating trading rules. The price of bitcoin slid 3% to $26,955.61, according to Coin Metrics. Ether fell 3.5% to $1,704.56.

In a court filing, the CFTC, or the Commodity Futures and Trading Commission, said Binance violated eight provisions of a commodities trading law “designed to prevent and detect money laundering and terrorism financing.” The lawsuit, which was filed Monday in a federal court in Chicago, has the potential to upend the exchange’s operations.

Dessislava Aubert, an analyst at crypto data provider Kaiko, said although bitcoin’s March rally had already started to slow in the last week, the down move Monday was largely driven by the news about Binance. It’s “the largest crypto exchange and any U.S. regulatory action against it will have huge implications for the industry,” she said.

The CFTC court filing follows a CNBC report on Binance employees who have worked to subvert the exchange’s compliance controls in China. Similarly, CFTC alleges that Binance has instructed its workers and customers to circumvent these controls.

Read more: https://www.cnbc.com/2023/03/27/bitcoin-drops-after-cftc-sues-crypto-exchange-binance-for-allegedly-breaking-trading-rules.html

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Article updated.

Original article -

Cryptocurrencies dropped on Monday morning after the CFTC sued Binance, the biggest crypto exchange in the world, for allegedly violating trading rules. The price of bitcoin slid 3% to $27,001.05, according to Coin Metrics. Ether fell 3% to $1,708.73.

In a court filing, the CFTC, or the Commodity Futures and Trading Commission, said Binance violated eight provisions of a commodities trading law “designed to prevent and detect money laundering and terrorism financing.” The lawsuit, which was filed Monday in a federal court in Chicago, has the potential to upend the exchange’s operations.

Dessislava Aubert, an analyst at crypto data provider Kaiko, said although bitcoin’s March rally had already started to slow in the last week, the down move Monday was largely driven by the news about Binance. It’s “the largest crypto exchange and any U.S. regulatory action against it will have huge implications for the industry,” she said.

The CFTC court filing follows a CNBC report on Binance employees who have worked to subvert the exchange’s compliance controls in China. Similarly, CFTC alleges that Binance has instructed its workers and customers to circumvent these controls.

[Crowman2009]

1. Crypto has always been a financial mirage.

[cab67]

2. why i crypto still a thing?

Seriously - it has as much value as Monopoly money, except that people with lots of money like to play with it.

[Javaman]

3. because the libertarian ultra rich think it is.

they are still trying to so hard to create some bullshit utopia based on.. I have no idea what

[peppertree]

4. And they're still trying to use it to launder money and evade taxes

Especially among elites in third world countries, where's still popular - or was, until recently.

[SouthernDem4ever]

6. Bingo!

That's it in a nutshell. Scammers us it all the time to launder stolen money.

[womanofthehills]

7. Thousands of young people on Twitter use crypto to buy/trade NFT's.

Bitcoin goes up and down every minute - one bitcoin was worth $28,307 today at noon.

[Galraedia]

11. That's because they want to pump and dump it off to some poor bastard

...who doesn't know any better. It's just a bunch of people that take a crypto currency with no real value and no actual use and pump it up to a value that they can sell to someone dumb enough to buy it.

[FakeNoose]

5. People are going to start losing their shirts soon

I don't want to hear anybody crying for bailouts either. They've all been warned.

Just sayin'

[SouthernDem4ever]

8. They are not FDIC insured so bailout is a moot point with bitcoin

The problem is idiot banks might be using it and puts their depositors at risk -thanks to all the deregulation of the banking industry.

[Yavin4]

9. Outside of money laundering, what the hell do you use Bitcoin for?

Can't even buy a gumball out of a machine with it?

[cab67]

10. the only circumstance I've encountered...

...is paying off hackers who've broken into your system and are threatening to release confidential information..

Other than that, it's play money.

The solution, it seems to me, is to treat crypto as a figment of the imagination (which is exactly what it is) and to ensure the security of sites cryptodouchebags like to target.


I don't pretend that this is a serious undertaking.