The civil complaint was filed in the U.S. District Court for the Northern District of Illinois on Monday, March 27.
According to a press release announcing the filing, the CFTC alleges that Binance “chose to knowingly disregard applicable provisions of the [Commodity Exchange Act (CEA)] while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit.”
The derivatives markets regulator is also accusing former Chief Compliance Officer Samuel Lim of aiding and abetting the alleged illegal activity.
The CFTC is seeking monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the law.