Breaking News: Bloomberg reports Binance under investigation by CFTC for derivatives trading, BNB plunges 10% instantly

Bloomberg released a report stating that sources revealed Binance is currently under investigation by the U.S. Commodity Futures Trading Commission (CFTC) to determine if they provided derivatives trading to U.S. users without proper authorization. Following the news, Binance's platform token BNB has dropped more than 10%.

Binance Remains Calm Amidst Turmoil

Zhao Changpeng stated that these are all panic emotions, and they will continue to focus on development, with an upcoming AMA on Clubhouse.

Just Announced Former Ambassador as Advisor

The exchange Binance kept everyone guessing for two days, only to announce on the 11th that they have hired former Democratic Senator and former Ambassador to China, Maxwell Baucus, as an advisor. Binance, due to its numerous tradable assets and active development of derivative businesses, cannot provide its diversified services within the regulatory framework in the United States. According to Wu Blockchain, this move will help solve Binance's compliance issues in the U.S. At the time, before the news was released, BNB surged by over 8%, but quickly dropped after the news came out.

Unexpectedly, a day later, news of an investigation emerged. Ethereum developer Sassno jokingly commented that perhaps this is CZ's significant announcement.

Binance Only Truly Banned U.S. Users in 2020

Binance had issued warnings to U.S. users as early as 2019, asking U.S. residents to stop using the exchange's services. It wasn't until November 2020 that Binance actually began to prohibit U.S. users. Therefore, in terms of behavior, U.S. residents were indeed able to use Binance's derivative trading services.

It was mentioned in the 2020 annual report that regulatory oversight of derivative trading could become a concern for exchanges.