- Crypto exchange Binance ran a “VIP” program for big trading firms that gave them slightly faster access to the exchange’s core systems, according to a lawsuit filed by the CFTC.
- The CFTC also said Binance knowingly allowed U.S.-based trading firms to access its international derivatives market despite declaring it off-limits to Americans.
- Some traders said Binance’s VIP program is typical for the industry and necessary to win business from high-frequency traders.
- Critics of high-frequency firms said they make money at the expense of less sophisticated traders.
- The CFTC’s lawsuit suggests the agency is scrutinizing how U.S. firms access offshore crypto exchanges.
Crypto Giant Binance Offered Perks to ‘Flash Boys,’ Regulator’s Lawsuit Says
Crypto exchange Binance is accused of offering perks to high-frequency traders such as faster access to the exchange’s core systems, says a lawsuit filed by the CFTC.