- Jane Street has been identified as one of the three unnamed VIP clients in CFTC’s lawsuit against Binance.
- Tower Research and Radix Trading were the other two unidentified clients that enjoyed special privileges.
- The CFTC has alleged that the three American firms had undue access to Binance’s global platform.
When the U.S. Commodities and Futures Trading Commission (CFTC) brought a civil enforcement action against crypto giant Binance last month it mentioned three “VIP” clients in its complaint. These special clients were allegedly based in the United States and were allowed by the crypto exchange to access its global trading platform, thereby evading compliance standards set by the regulator.
CFTC: Binance allowed VIP clients to evade KYC requirements
According to a report by Bloomberg, Jane Street Group, Tower Research Capital, and Radix Trading are the three unnamed firms that were cited as VIP clients by the CFTC in its lawsuit. The U.S. headquartered trading firms were allegedly given special treatment by Binance, including the privilege to key compliance controls like know-your-customer (KYC) requirements.
We got legal vetting on anything we did in terms of crypto connectivity.”
Radix Trading previously identified itself as “Trading Firm A” as mentioned in the CFTC’s complaint. Benjamin Blander, Radix’s co-founder, told the Wall Street Journal last week that his firm had traded on Binance over the past few years using offshore entities and a prime brokerage that provided access to the crypto exchange. Blander added that his firm had been cooperating with the regulator before the lawsuit was filed. He believes that Radix is not the subject of any investigation stemming from its relationship with the crypto exchange.
People familiar with the matter revealed that Jane Street is “Trading Firm B” and Tower Research is “Trading Firm C” as mentioned in the CFTC’s complaint. Jane Street declined to comment on Bloomberg’s report, while Radix and Tower didn’t respond to multiple requests for comment.
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