Binance, the largest crypto exchange by trading volume, lost 16% of its market share following the U.S. Commodity Futures Trading Commission's (CFTC) complaint against it.
The platform's market share declined to 54% from 70% two weeks ago, retreating to the lowest rate since November 2022.
- In March, the CFTC filed a lawsuit against Binance and its CEO Changpeng Zhao (CZ) with allegations of seven counts of regulatory violations.
- The accusations in the lawsuit include executing unregistered futures transactions, failing to properly register with the derivatives regulator, law evasion, and market manipulation.
- At
the time, Zhao said the company did not agree with the allegations in
the lawsuit, calling the CFTC's complaint unexpected and disappointing.
- Shortly
after the complaint, the popular crypto exchange also halted its
zero-fee trading promotion for 13 Bitcoin (BTC) spot trading pairs.
- The termination of zero-fee trading led the platform to see its lowest BTC trading volume since July last year.
- Within the first 24 hours of the CFTC's complaint, Binance users reacted to the news with nearly $1B in net outflows.
- In
addition to the CFTC, Binance has also been under scrutiny by the
Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), and federal prosecutors in the U.S.
