The U.S. Commodity Futures Trading Commission (CFTC) has had a lawsuit against the cryptocurrency exchange Binance, founded by Changpeng "CZ" Zhao, since March. The authority accuses the company of having processed illegal crypto transactions for U.S. citizens since 2019 - even though the platform is not authorized for the U.S. market.

Binance vehemently denies the allegations and now wants to take legal action against the charges. In a filing with the U.S. District Court for the Northern District of Illinois, the CFTC emphasized that Binance and CEO Zhao deliberately focused on the US cryptocurrency market and wanted to attract customers from the United States with "creative means".

Among the advertising methods of the crypto exchange, which are under criticism from the CFTC, is the "Binance Angels" program, for example, which seeks voluntary crypto enthusiasts to care for the exchange's community. A party held as part of the Grammy Awards in Las Vegas, attended by high-ranking trading firms and brokers, also met with criticism from the agency.

The CFTC argues that trading via Binance not only violates US law, but the platform is also an attractive refuge for "darknet users, criminals, and terrorists" looking to move money across borders. On the other hand, Binance emphasizes that US customers use their subsidiary exchange, Binance.

US should use where trading with futures is not possible anyway. The main platform Binance is indeed able to trade derivatives, but it is solely aimed at customers outside of the United States.

However, the CFTC was not convinced by Binance's arguments and stuck to its lawsuit. In response, Binance filed its own lawsuit against the agency at the end of October, severely criticizing their approach. The company labeled the CFTC's communication as "seditious" and emphasized that it was overstepping its bounds by trying to achieve worldwide regulation.

Binance is currently in legal disputes not only with the CFTC, but also with the Securities and Exchange Commission (SEC). The stock market regulator accuses the company of operating an unregistered securities exchange. Binance also intends to legally contest these allegations. According to media reports, the cryptocurrency exchange could soon also be facing a lawsuit from the US Department of Justice for fraud.