CFTC sues Binance and its CEO for illegal activities seeking civil monetary penalties and other equitable relief.

According to a lawsuit filed by the US Commodity Futures Trading Commission (CFTC), Binance and its CEO CZ violated CFTC regulations, including the Commodity Exchange Act, by soliciting and accepting orders from US customers for commodity futures, options, swaps, and leveraged retail commodity transactions without being registered with any regulatory agency and without completing such trades on a trading platform. The lawsuit alleges that Binance, under CZ's guidance, inadvertently circumvented legal oversight by assisting Samuel Lim in generating revenue from US customers, prioritizing business success over compliance. Despite promising to restrict access to its platform for US customers, the company relied on US personnel and suppliers, actively cultivated US-based VIP clients, and concealed identities and locations to evade regulation. As a result, the CFTC is seeking civil monetary penalties and other equitable relief.