Binance faces allegations of insider trading by US officials as regulatory clampdown continues


  • US investigations into Binance have now expanded to examining allegations of insider trading and market manipulation.
  • Authorities believe that the leading crypto exchange may have taken advantage of its customers.
  • While the CFTC continues to investigate, Binance has responded that it has a “zero-tolerance policy” for insider trading.

Binance continues to face regulatory scrutiny as US officials are looking into potential insider trading and market manipulation. Investigations are digging deeper into whether Binance or its staff have taken advantage of its customers.

CFTC continues to probe deep into Binance

The world’s largest cryptocurrency exchange, Binance is facing an inquiry from US officials as they are suspecting that the firm has been involved in insider trading and market manipulation. The review involves the US Commodity Futures Trading Commission (CFTC) investigators, who have been speaking to potential witnesses, according to a Bloomberg report.

The authorities in the US are questioning whether the exchange has exploited access to millions of transactions, including the possibility of the firm trading on customer orders before executing them.

In response to the allegations, a Binance spokesperson told Bloomberg that the exchange has a “zero-tolerance policy” for insider trading and an ethical code to prevent any misconduct that could potentially harm customers or the digital asset industry. The security at Binance has strict guidelines that are set for investigating wrongdoing and holding its employees accountable.

Binance has been faced with increased regulatory pressure across multiple continents, as a growing list of countries are demanding the company to halt services within their borders. Previously, the Justice Department and the Internal Revenue Service in the US have launched investigations into Binance’s business with concerns over money laundering and tax evasion. 

Currently, Binance has not been confronted with any official action, although the CFTC and Justice Department have been looking closely at the firm for months. There could be some time before the agencies decide whether to press charges against the exchange.

Binance Coin price in danger of a 22% decline

Binance Coin price has formed a symmetrical triangle pattern on the 4-hour chart that started on September 7. While the technical pattern suggests that BNB is met with indecision, the breakout of the support trend line at $398 indicates that the exchange-based coin could be headed for a steep fall.

In fact, the prevailing chart pattern suggests that Binance Coin price is headed for a 22% decline toward $309. Despite the pessimistic outlook, BNB has a few lines of defense before the bearish target is in the offing.

Binance Coin price would discover immediate support at the 50% Fibonacci retracement level at $386. The following line of defense for BNB is at the 38.2% Fibonacci retracement level at $355, then at $325, corresponding to the 27.2% Fibonacci retracement level.

BNBUSDT

BNB/USDT 4-hour chart

Only a massive spike in selling pressure could see Binance Coin price fall to its bearish target at $309. 

BNB must stay above $393, the support level given by the Momentum Reversal Indicator (MRI), to void the pessimistic outlook.

The lower trend line of the triangle would then act as the next level of resistance at $398 before being confronted by the 50 four-hour Simple Moving Average (SMA) at $412.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price stares at 15% breakout as SHIB loses directional bias

Shiba Inu price is stuck in a range since it set up the October 7 swing high. As SHIB currently sits on the mid-point of this range, it shows no directionality whatsoever. Therefore, a breakdown of the 50% Fibonacci retracement level could lead to a drop or an upswing if the buyers decide to make a comeback.

More Shiba Inu News

Ethereum price must crack this key level before exploding toward $6,400

Ethereum price has presented a massive bullish target on the daily chart, suggesting that ETH is preparing for a rally toward $6,400. However, there is one key resistance level to slice through before the token is propelled higher into price discovery territory.

More Ethereum News

Cardano's Charles Hoskinson says US wants to kill crypto as ADA price teeters on a 20% drop

Cardano price is currently facing a challenging situation where a breakdown of a crucial support floor could lead to a steep correction. Therefore, investors need to keep an eye out for ADA, which is close to triggering this descent.

More Cardano News

Institutions pour $3.6M into Polkadot ahead of parachain auctions, pushing DOT to breakout

Digital asset managers have reported a rise in the institutional capital inflow in Polkadot as the overall cryptocurrency market capitalization climbs higher. A Polkadot founder announced $774 million dedicated for developing DeFi projects. 

More Polkadot News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP