• The U.S. Commodity Futures Trading Commission (CFTC) has sued Binance for enabling US citizens to access its platform and violating trading laws.
• Three unnamed VIP trading firms, Radix Trading, Jane Street and Tower Research have been revealed as being involved in the lawsuit.
• These three firms allegedly received preferential treatment from Binance in return for providing liquidity on its platform.
CFTC Lawsuit Against Binance
The United States Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against the cryptocurrency exchange Binance for allowing US citizens to access its platform and violating trading laws.
Revealed VIP Trading Firms
The three “VIP” quant trading firms named by the CFTC in its lawsuit have now been identified as Radix Trading, Jane Street, and Tower Research. Radix is only referred to as “Trading Firm A,” while Jane Street and Tower Research are “Trading Firm B” and “Trading Firm C.” All three of these firms are based in the United States but use offshore entities to trade on the platform.
Overview Of Each Firm
Radix is a trading firm based in Chicago with offices around the world that specializes in research-powered technology monetized through trading activities. Jane Street is a quant trading firm with offices located mainly in New York and Singapore known for offering sophisticated analysis services alongside liquidity solutions. Lastly, Tower Research offers high-frequency and algorithmic trading from its headquarters in New York City.
Preferential Treatment From Binance
The three institutional trading firms allegedly received preferential treatment from Binance due to their contributions of liquidity on the exchange’s platform that included lower transaction fees, faster access to trades, among other perks. Despite this fact, co-founder Benjamin Blander of Radix insists that they did not break any laws by using offshore entities on Binance’s platform and they are complying with CFTC requests at this time. Jane Street declined comment while Tower did not respond to inquiries regarding the matter; however, Binance said it was disappointed by these accusations despite boosting compliance on their end significantly since then.
Conclusion
In conclusion, the U.S Commodity Futures Trading Commission recently filed a lawsuit against cryptocurrency exchange Binance for violation of certain laws related to US citizen’s accessing their services . It has now been revealed that 3 “VIP” quant trading firms – Radix Trading ,Jane Street & Tower Research were involved with receiving preferential treatment fromBnance including lower transaction fees & faster access for trades . The 3 firms have denied any wrong doing but have failed or declined comment about their involvement . Finally ,Bnance has reported feeling disappointed about CFTC’s accusations despite having increased their compliance measures since then .