U.S. probes potential insider buying and selling at Binance

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© Reuters. FILE PHOTO: A representation of cryptocurrency Binance is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -U.S. officials are examining possible insider trading and market manipulation at Binance, Bloomberg News reported on Friday, potentially adding more heat to the cryptocurrency exchange that has become a target of regulatory scrutiny in many countries.

Authorities are looking into whether Binance or its staff profited by taking advantage of its customers, Bloomberg reported https://www.bloomberg.com/news/articles/2021-09-17/u-s-s-binance-probe-expands-to-examine-possible-insider-trading, citing people with knowledge of the matter.

“At Binance, we have a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry,” the world’s biggest crypto platform said in a statement.

The company has faced warnings and business curbs from financial watchdogs from Britain and Germany to Japan, who are concerned over the use of crypto in money laundering and risks to consumers.

The exchange, whose holding company is registered in the Cayman Islands, has scaled back its product offerings and said it wants to improve relations with regulators.

The review involves Commodity Futures Trading Commission (CFTC) investigators, who in recent weeks have been reaching out to potential witnesses, the Bloomberg report said, adding that Binance has not been accused of wrongdoing and the investigations may not lead to any official action.

The CFTC did not immediately respond to a request for comment.

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