Binance and CEO CZ facing regulatory action from CFTC, IRS and SEC

Leading cryptocurrency exchange, Binance, and its CEO Changpeng “CZ” Zhao, are in hot water as the United States Commodity Futures Trading Commission (CFTC) filed a lawsuit against the company for trading violations. The case was filed in the U.S. District Court for the Northern District of Illinois, Bloomberg reported.

The CFTC’s allegations center around Binance‘s failure to adhere to regulatory obligations by not registering properly with the derivatives regulator.

The cryptocurrency exchange has been under the CFTC’s microscope since 2021, and in February, Binance acknowledged the likelihood of facing regulatory action in the United States. The company has since been actively cooperating with regulators in an effort to resolve the situation.