- US investigations into Binance have now expanded to examining allegations of insider trading and market manipulation.
- Authorities believe that the leading crypto exchange may have taken advantage of its customers.
- While the CFTC continues to investigate, Binance has responded that it has a “zero-tolerance policy” for insider trading.
Binance continues to face regulatory scrutiny as US officials are looking into potential insider trading and market manipulation. Investigations are digging deeper into whether Binance or its staff have taken advantage of its customers.
CFTC continues to probe deep into Binance
The world’s largest cryptocurrency exchange, Binance is facing an inquiry from US officials as they are suspecting that the firm has been involved in insider trading and market manipulation. The review involves the US Commodity Futures Trading Commission (CFTC) investigators, who have been speaking to potential witnesses, according to a Bloomberg report.
The authorities in the US are questioning whether the exchange has exploited access to millions of transactions, including the possibility of the firm trading on customer orders before executing them.
In response to the allegations, a Binance spokesperson told Bloomberg that the exchange has a “zero-tolerance policy” for insider trading and an ethical code to prevent any misconduct that could potentially harm customers or the digital asset industry. The security at Binance has strict guidelines that are set for investigating wrongdoing and holding its employees accountable.
Binance has been faced with increased regulatory pressure across multiple continents, as a growing list of countries are demanding the company to halt services within their borders. Previously, the Justice Department and the Internal Revenue Service in the US have launched investigations into Binance’s business with concerns over money laundering and tax evasion.
Currently, Binance has not been confronted with any official action, although the CFTC and Justice Department have been looking closely at the firm for months. There could be some time before the agencies decide whether to press charges against the exchange.
Binance Coin price in danger of a 22% decline
Binance Coin price has formed a symmetrical triangle pattern on the 4-hour chart that started on September 7. While the technical pattern suggests that BNB is met with indecision, the breakout of the support trend line at $398 indicates that the exchange-based coin could be headed for a steep fall.
In fact, the prevailing chart pattern suggests that Binance Coin price is headed for a 22% decline toward $309. Despite the pessimistic outlook, BNB has a few lines of defense before the bearish target is in the offing.
Binance Coin price would discover immediate support at the 50% Fibonacci retracement level at $386. The following line of defense for BNB is at the 38.2% Fibonacci retracement level at $355, then at $325, corresponding to the 27.2% Fibonacci retracement level.
Only a massive spike in selling pressure could see Binance Coin price fall to its bearish target at $309.
BNB must stay above $393, the support level given by the Momentum Reversal Indicator (MRI), to void the pessimistic outlook.
The lower trend line of the triangle would then act as the next level of resistance at $398 before being confronted by the 50 four-hour Simple Moving Average (SMA) at $412.