CFTC attacks Binance with civil enforcement action
The Commodity Futures Trading Commission announced it has filed a civil enforcement action in the U.S. District Court for the Northern District of Illinois charging Changpeng Zhao and three entities that operate the Binance platform.
They want to sue the exchange with numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations. The complaint also charges Samuel Lim, Binance’s former chief compliance officer, with aiding and abetting Binance’s violations.
In a long filing, the CFTC claims that Binance traded against it’s customers with more than 300 accounts and also that they ignored red flags regarding the finance of terrorism and other illegal payments.
Canada proposes declaration of crypto exposure by pension plans
The Canadian federal government said that federally regulated pension plans in the country would be required to report their exposure to crypto assets to the Office of the Superintendent of Financial Institutions (OSFI).
Under the proposed 2023 budget proposal, the government explains that in order to “help protect Canadians’ retirements,” it would compel federally regulated pension plans to reveal their exposure to crypto-assets to OSFI.
Some national pension funds have already learned the hard way about investing in cryptocurrency. The Caisse de Depot et Placement du Québec, a pension fund located in Quebec, said last year that it had lost US$150 million on a stake in Celsius Network.
Similarly, Canada’s biggest pension fund, Ontario Teachers’ Pension Plan, which manages about US$250 billion in assets, said in December 2022 that it will write down its entire US$95 million stake in FTX.
BlockFi to reimburse over $100,000 to California customers
BlockFi, a bankrupt crypto lender, has agreed to provide refunds totaling over $100,000 to its California customers who continued to repay loans despite a trading suspension on November 10th of last year.
The Department of Financial Protection and Innovation (DFPI) of California revealed on Monday that BlockFi had authorized the distribution of $103,471 in refunds through its servicer to its clients in California.
According to the DFPI, BlockFi had failed to promptly notify its customers that they were no longer required to repay loans at the time of the company’s bankruptcy in November.
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