![]() The founder of Binance’s one-time competitor, Sam Bankman-Fried, was arrested in the Bahamas this week after US prosecutors filed criminal charges against him. Zhao, who is known as “CZ,” said people were down on the crypto sector following the collapse of FTX in November. ![]() “We’re seeing the money flowing back already,” he said in a conversation on Twitter Spaces on Wednesday, calling the fund withdrawals “very normal market behavior.” The company had seen worse days before, he later added. Jump Crypto is part of the Jump Trading Group, a quantitative trading firm.īinance CEO Changpeng Zhao said that the exchange had at one point seen “some withdrawals” of roughly $1.1 billion. ![]() “In short, it’s a lot of money headed out, and that’s spooked some folks.” “Concurrently, a large market maker, Jump, was found to have withdrawn huge sums from Binance with no deposits over the past few weeks - ultimately seems to have caused jitters among both retail and institutional users,” Thurman said. A report about an ongoing investigation by the US Justice Department into the exchange was a factor in investors’ nervousness, he said. “This is a major shift that shows regulators are not only going after the company but also executives.Investors withdrew as much as $3 billion from Binance on Tuesday, according to blockchain analytics firm Nansen, as a deluge of negative headlines about the cryptocurrency industry rattled users of the world’s largest exchange.Īndrew Thurman, content lead for Nansen, told CNN that at its peak, Binance saw “as high as $3 billion in net outflows” over a 24-hour period. The lawsuit is also interesting because two executives, Zhao and Lim, were named, Guo noted. The ultimate impact on Binance could send shockwaves through the global digital asset market, Jason Allegrante, chief legal and compliance officer at Fireblocks, said. “The best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime.”īinance has spent $80 million on external partners like know-your-customer vendors, transaction monitoring, market surveillance and investigative tools to support its compliance programs, the spokesperson added. TechCrunch+ reached out to CFTC for comment but did not hear back by the time of publication.Ī Binance spokesperson said the filing was “unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years.” They added that they intend to continue to collaborate with regulators in the U.S. financial markets, including laws that implement controls to prevent and detect money laundering and terrorism financing, among other aspects, the filing said. The exchange has never registered with the CFTC in any capacity and has “disregarded federal laws” for U.S. It launched in June 2017, and within 180 days became the largest crypto exchange in the world. “The past six months has seen a wave of complaints and enforcement actions against blue-chip names including Coinbase, Kraken and KuCoin, and it was only a matter of time until Binance had their turn.”īinance had about $11 billion in trading volume in the past 24 hours and has over 90 million customers globally, according to CoinMarketCap data. “Crypto is under attack,” Yankun Guo, partner at Chicago-based law firm Ice Miller, told TechCrunch+. ![]() The company, Zhao and Lim are being sued for allegedly breaking trading and derivatives rules. Commodity Futures and Trading Commission announced it was suing Binance, the world’s largest crypto exchange by volume its CEO, Changpeng Zhao and chief compliance officer Samuel Lim. Another bomb has fallen on the crypto space - and the impact could be far-reaching
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