Binance’s BNB token has posted losses in the past 24 hours after charges were filed against the company and its CEO Changpeng ‘CZ’ Zhao by Commodity Futures Trading Commission (CFTC).
The exchange’s native token saw a drop of 5.5%, becoming the biggest loser among the top ten cryptocurrencies by market cap. Data on Coingecko shows that Bitcoin also shed 2.7% of its value to trade at $27,100, and Ethereum dropped by 1.2% to $1,749.
CFTC accused the top crypto exchange of violating several rules in relation to derivatives trading. The regulator filed the lawsuit in a Chicago-based federal court.
In response to the charges, a Binance spokesperson said the company was disappointed by the CFTC’s move, considering it has been working closely with the regulator for over two years. Nonetheless, the exchange vowed to continue collaborating with the United States authorities.
Binance CEO Disagrees With CFTC
Meanwhile, Zhao said in a blog post that he does not agree with most of the issues alleged in the lawsuit and that he is working with Binance legal team to give full responses in the coming days.
Among the issues that the Binance CEO finds inaccurate is in regard to the KYC (Know-Your-Customer) procedures. The lawsuit accuses the exchange of not following the stipulated policies that help authorities identify and curb money laundering. However, Zhao says Binance employs modern technology to ensure such policies are adhered to.
The CEO also states that Binance is not involved in manipulating the market and has never traded for profit.
Zhao initially brought about some confusion when he wrote that he eats his dog’s food and stores his crypto on Binance.
He clarified that statement by sharing a link to an Investopedia article that describes the expression. He also said he was referring to the internal use of Binance’s services.
BNB Remains Steady
Since Zhao’s statement, the price of BNB has remained relatively stable, trading between the $307 and $311 region.
Further, Binance posted a letter it reportedly sent to US Senators Van Hollen, Marshall, and Warren today in response to their demand that the exchange discloses a detailed financial accounting report.