CZ Addresses the CFTC ‘In-House’ Trading Allegations
The Commodities and Futures Trading Commission filed a lawsuit against Binance and CZ personally yesterday, firing multiple allegations across different fronts.
One that stood out and is widely discussed amongst the community is that Binance and CZ traded on the platform:
… Zhao is the direct or indirect owner of entities that have engaged in proprietary trading activity on the Binance platform, including Merit Peak Limited and Sigma Chain AG, and Zhao is the direct or indirect owner of approximate 300 separate Binance accounts that have engaged in proprietary trading activity on the Binance trading platform.
- Responding to some of the allegations, CZ explained that Binance,com doesn’t trade for profit or to manipulate the market but confirmed that it does trade in numerous situations.
- For instance, he clarified that the company’s revenue is in crypto and that they need to convert it from time to time to cover expenses in fiat or in another crypto.
- He also said that they have affiliates who provide liquidity for pairs that are less liquid and that they are being monitored “specifically not to have large profits.”
- In addition, he also confirmed that he has two accounts at Binance – one for his crypto holdings and one for his Binance Card. He said that he needs to convert crypto from time to time to cover his personal expenses.
- The CEO of Binance also reiterated that they have a 90-day no-day-trading rule for their employees, meaning that they aren’t allowed to sell a coin within 90 days of the most recent buy or vice-versa.
- The full response can be found here.
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