Could CFTC Cause This Crypto Crash?

Binance appears to be under increased scrutiny from regulators due to potential misuse of its cryptocurrency exchange. According to Bloomberg, US authorities have expanded their investigation into Binance to have included possible insider trading and market manipulation. Although the cryptocurrency exchange has not been linked to any fraudulent or criminal activity, Commodity Futures Trading Commission investigators have reportedly spoken with potential witnesses about issues such as the location of Binance servers.

​Investigators are reportedly looking for internal Binance data that could show Crypto sales of those securities to American customers, which would violate regulations that prohibit such sales without registration. The IRS and the Justice Department are also looking into possible money laundering on the exchange.

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Coinbase Will Be Targeted Also

​Brian Armstrong, Coinbase's CEO, informed the SEC about its new Lend feature as a courtesy, but received negative feedback based on his impression that similar features exist on other platforms. However, the SEC informed the company that the lend feature would be considered a security, which means it would be regulated as an investment, according to Armstrong. Coinbase disagrees with the decision, but they were unable to make their case in the same arena as others. Instead, the SEC opened an investigation into Coinbase, according to Armstrong and Coinbase, and requested employee testimony as well as the names and contact information of people who had signed up for the Lend waitlist.

"Let's not forget Coinbase was investigated at one point and found guilty of price manipulation. They paid a few million dollars in fines which is like a few pennies to them, and that was it. No arrests. No big hoopla. Pay the fine and back to business as usual. DOJ and IRS just looking to get paid as usual." Commented by a Reddit's user

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