US Officials Add Insider Trading Claims to Binance Investigation: Report

Binance already faced a probe from the IRS and Department of Justice.

Sep 17, 2021 at 9:24 p.m. UTC
Updated Sep 20, 2021 at 2:02 p.m. UTC

Reported U.S. investigations into Binance, one of the world’s largest crypto exchanges, now include an insider trading and market manipulation probe, Bloomberg reported Friday.

Bloomberg said the Commodity Futures Trading Commission (CFTC) has begun recruiting possible witnesses. That could signal a more serious legal investigation than the collaborative inquiry Binance officials have described in earlier reports.

Binance already faced a probe from the U.S. Department of Justice and the Internal Revenue Service. The investigation reportedly focused on tax and money laundering claims.

The CFTC has also reportedly been investigating the exchange for allowing customers in the U.S. to trade derivatives products without oversight from the CFTC.

A Binance spokesperson told CoinDesk the exchange has “a zero-tolerance policy for insider trading.”

“There is a long-standing process in place that our security team follows to investigate and hold those accountable that have engaged in this type of behavior, immediate termination being minimal repercussion,” the spokesperson said in a statement.

A CFTC spokesperson declined to comment.

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Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.