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Binance Probed by CFTC Over Whether U.S. Residents Traded

  • Agency examines if firm let U.S. residents buy derivatives
  • Digital token platform hasn’t been accused of wrongdoing
Cryptocurrency Exchange Illustrations As Caution Sweeps Over Crypto
Photographer: Tiffany Hagler-Geard/Bloomberg
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Binance Holdings Ltd., the largest cryptocurrency exchange, is being investigated by the Commodity Futures Trading Commission over concerns that it allowed Americans to place wagers that violated U.S. rules, according to people familiar with the matter.

The CFTC is seeking to determine whether Binance, which isn’t registered with the agency, permitted U.S. residents to buy and sell derivatives that the regulator polices, said the people, who asked not to be identified because the probe is confidential. Binance, which has an office in Singapore but says it lacks a single corporate headquarters, hasn’t been accused of misconduct and the investigation may not lead to an enforcement action.