How Bad Is the CFTC’s Binance Lawsuit?

Instead, this is likely just another significant blow to crypto’s reputation. Evidence suggests there is at least one informant at Binance, who passed private communications and self-destructing Signal messages to the commodities watchdog. Those messages paint a portrait of Binance – with Zhao at the helm – as a business that would sacrifice rules for the sake of growth. Large traders were privileged with faster settlement connections and lower fees – putting them above retail investors. And, if the CFTC is to be believed, Binance traded against its customers, which seems to be a trend at crypto exchanges.