Ripple CTO Shares Sarcasm on CFTC Allegation That Binance Warns Its VIP Clients About Law Enforcement Checks

Chief technology officer of Ripple David Schwartz, known as @JoelKatz on Twitter, has shared a screenshot with an extract from the document with the CFTC complaint against the Binance exchange.

In particular, it stated that Binance basically tipped off its VIP customers about upcoming law enforcement actions regarding their wallets, such as checking on their transactions or, in particular, if their wallets on Binance are going to be frozen.

David Schwartz seems to be especially amused by the wording that Binance "do not directly tell users to run" but "he/she will get the hint," highlighting these sentences and commenting "cool, cool" on those.

Cool, cool. pic.twitter.com/ullk5g1Fsn

— David "JoelKatz" Schwartz (@JoelKatz) March 28, 2023

The crypto market has been hit by the news of the Commodity Futures Trading Commission (CFTC) suing Binance and its chief executive Changpeng Zhao (CZ), claiming that they have often violated laws on derivatives in the U.S.

As reported by U.Today earlier, the CFTC also claimed that CZ and several entities indirectly owned by him that run Binance are linked directly and indirectly to 300 accounts on Binance, through which they trade against their own customers. Besides, the document filed by the CFTC says, CZ has access to two individual accounts for trading on Binance. He has not, allegedly, registered them with the regulator in any way.

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Tue, 03/28/2023 - 13:24

CZ Trading Against Binance Clients From 300 Accounts, CFTC Documents Claim

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Earlier today, the Ripple CTO suggested a curious and unusual solution for the SEC and CFTC to share the control over the crypto space that they seem to be trying so hard to obtain. Schwartz suggested that they should fight each other, and the winner would take all.