Exchanges

Binance under investigation for potential insider trading, market manipulation

  • Crypto exchange Binance is under investigation for potential insider trading, market manipulation
  • The investigations are conducted by US officials, including those from CFTC
  • Binance has been improving its compliance and regulatory efforts

Cryptocurrency exchange Binance is under investigation in the United States for potential insider trading, market manipulation.

US officials are investigating Binance

Leading cryptocurrency exchange Binance is currently being investigated by officials of the United States government. Bloomberg reported that the investigation had been expanded to include whether the exchange or its staff profited by taking advantage of its customers.

According to Bloomberg, U.S. officials, including the Commodity Futures Trading Commission, are investigating Binance for possible insider trading and market manipulation. The CFTC is currently contacting potential witnesses as it launches an investigation into the allegations. At the moment, the CFTC hasn’t made any statement regarding the allegations.

Binance shores up its regulatory efforts

The cryptocurrency exchange has increased its compliance and regulatory efforts in recent months. However, that hasn’t been enough to get Binance out of the news regarding regulatory challenges.

Binance hired former Europol dark web specialist Nils Andersen Röed to occupy the role of senior director of audit and investigations within the company. The exchange said, “His focus will be on conducting and leading internal and external investigations with the purpose of identifying bad actors that attempt to commit crimes on Binance’s platforms and to protect users’ funds, as well as proactively supporting law enforcement agencies with their investigations.”

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