- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-03-27T21:26:00
The Commodity Futures Trading Commission (CFTC) charged Binance and its founder with operating an illegal digital assets exchange.
The agency’s announcement Monday also included charges against former Binance Chief Compliance Officer Samuel Lim for aiding and abetting the exchange’s alleged violations of the Commodity Exchange Act (CEA) and CFTC regulations. Entities Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited were each named in the complaint, along with founder Changpeng Zhao.
The complaint, filed in U.S. District Court for the Northern District of Illinois, cited a number of violations at Binance, including:
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Federal agencies hit Binance with more than $4.3 billion in penalties and imposed multiple compliance monitorships on the virtual currency exchange as punishment for its repeated and intentional violations of U.S. anti-money laundering laws, sanctions, and other regulations.
The Securities and Exchange Commission charged Binance Holdings, its U.S.-based affiliate BAM Trading Services, and their founder Changpeng Zhao with a series of securities law violations, including operating unregistered exchanges.
A cryptocurrency firm with a chief compliance officer found to not be handling the responsibilities of their role seriously is likely to face additional regulatory scrutiny, as evidenced by the Commodity Futures Trading Commission’s action against Binance.
RTX Corp., the parent company of Raytheon, disclosed in a public filing it has reserved $1.24 billion to resolve legacy legal matters with the Department of Justice, Securities and Exchange Commission, and Department of State.
The U.K. Financial Conduct Authority issued a fine of $4.5 million (3.5 million pounds) against a U.K.-based subsidiary of crypto platform Coinbase for providing services to high-risk customers in violation of FCA rules.
Admera Health agreed to pay more than $5.5 million to resolve allegations first brought by two whistleblowers that it paid kickbacks to third-party contractors, the Department of Justice said.
