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🥊 US vs. Binance: War continues
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👉 On March 27, the CFTC filed a lawsuit against Binance and its CEO Changpeng Zhao in court in the Northern District of Illinois. The crypto exchange has been accused of violating derivatives trading rules, KYC/AML policy procedures, concealing income and dealing with “dirty” money.
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US Senate Banking Committee demanded that Binance provide detailed customer profiles and accused the exchange of having a fictitious KYC/AML policy. Zhao provided the senators with an answer, but no financial data. US citizens still make up a significant part of Binance's client base and the exchange does not want to part with its capital.
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So, the regulator claims that for years Binance:
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• offers prohibited crypto transactions in violation of US federal law;
• informs US customers about activity control evasion methods;
• conducts transactions with persons who are under international sanctions;
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Insider claims that the CFTC has the facts, and as part of the resolution of the problem, it may require Binance to stop operations in the US. The exchange is preparing to actively protect its business. In addition to organizational problems, Binance will face billions in fines.
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A few hours before the official release of the lawsuit, clients of crypto exchanges withdrew almost $1.5 billion from their balances. Of these, $850 million of losses fell on Binance, Coinbase, Bitfinex and Gemini, and a weak increase in reserves was recorded. Stocks of BTC and ETH on trading floors have been declining since March 20 - investors are moving their capital to safer assets.
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The main tokens have already worked out the first shock, BNB lost 5%, and shares of crypto-related companies - Coinbase, MicroStrategy, Marathon Digita, Riot Blockchain, and Hut 8 Mining - also recorded a decrease.
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On Friday, the markets will have to survive the expiration of abnormally large options on BTC and ETH: we are waiting for speculative volatility and liquidations of positions. Trading in such a market is strongly discouraged.
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Profits to y’all!