Cryptomarket suffers loss in the last 24 hours as the total market’s capitalization fell 1.9% to 1.14 trillion
Global crypto currency market fell on Tuesday extending the fall of the previous session. A major part of the fall is sponsored after the Commodities Futures Trading Commission (CFTC) sued Binance, the world’s largest crypto exchange, and CEO Changpeng Zhao for trading discrepancies.
The move came as a surprise to the markets and the prices of the major assets fell amid shock waves. Bitcoin fell more than 1%, and Ethereum lost 3.20%. The regulator put allegations of manipulation, and lack of compliance amid lack of cooperation in the investigation.
The US regulator alleged in federal court in Chicago that Binance CEO broke American derivatives rules as the firm grew to be the world’s largest trading platform.
In a statement, Gretchen Lowe.chief counsel in the CFTC’s enforcement division said that the defendant’s own email and chats showed that Binance’s compliance efforts have been a sham and they deliberately chose-over and over-to place profits over the law.
In addition to that, the regulator said that Binance failed to implement an effective anti-money laundering program. No concrete safeguards for determining the true identity of customers. Binance’s own documents for the month of August 2020 showed that the platform earned $63 million in fees from derivatives transactions, and that about 16% of its accounts were identified as being held by US customers.
In the counter statement, Binance called the action an unexpected and disappointing event. BUSD CEO further said that CFTC’s complaint appears to contain an incomplete recitation of facts.
