(2023)
CFTC v. Binance
Year
2023
Criminal or Civil
Civil (CFTC enforcement action)
Year Resolved
N/A – ongoing
Jurisdiction (Court/State)
U.S. District Court, Northern District of Illinois
Filed By
Commodity Futures Trading Commission (CFTC)
Penalty/Fine (USD)
Ongoing litigation – no finalized penalty yet. The CFTC seeks disgorgement, civil penalties, and permanent bans.
Lawsuit Overview
The CFTC filed a civil enforcement action against Binance, its founder Changpeng Zhao, and former CCO Samuel Lim for operating an unregistered digital asset derivatives exchange and willfully evading U.S. laws. The complaint outlines a pattern of regulatory arbitrage, including instructing U.S. customers on evading compliance controls and intentionally using communication apps set to auto-delete.
Category
Unregistered Derivatives Trading / Compliance Evasion / Market Oversight Violations
Notable Individuals Involved
Changpeng Zhao (CEO, Binance – directly charged)
Samuel Lim (former Chief Compliance Officer – charged with aiding and abetting)
CFTC Chairman Rostin Behnam
CFTC Enforcement Chief Counsel Gretchen Lowe
Investor Loss Estimate
Not explicitly stated, but Binance reportedly earned $11.6 billion in revenue during the period of alleged violations. Customer harm is tied to lack of protections from unregulated derivatives trading.
Final Outcome
Pending (as of 2025)
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