Binance Allegedly Misled U.S. Investors and Commodity Futures Trading Commission

Binance, the world’s biggest cryptocurrency exchange, has allegedly been accused of misleading U.S. investors and the Commodity Futures Trading Commission, also known as the CF about its association with an unlicensed broker-dealer.

The CFTC is probing Binance’s ties with Crypto Finance Ltd., a London-based trading broker-dealer that reportedly used to be authorised by the UK's Financial Conduct Authority (FCA). The regulator claims that Binance used Crypto Capital as a lead the turbine for U.S. investors, who were then directed to other unregulated brokers, which provided them with the opportunity to trade cryptocurrencies like Bitcoin and Ether that were not available on provides at the time – allowing them to make assets in those currencies without requiring a registration with the SEC or comply with trading rules.

The lawsuit also states that at least one user lost money when they sought to withdraw their monies from Crypto Capital, which had suspended operations but still continued to collect revenues from Binance for its services via electronic payments from its Hong Kong bank account.