• The United States Commodity Futures Trading Commission (CFTC) has sued the Binance cryptocurrency exchange for violating trading laws and enabling US citizens to access the platform.
• Three unnamed VIP trading firms have been revealed to be Radix Trading, Jane Street, and Tower Research.
• These firms allegedly received preferential treatment from Binance in the form of lower transaction fees and faster access for trades.
CFTC Sues Binance
The United States Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the Binance cryptocurrency exchange for violating trading laws and enabling US citizens to access the platform.
Three „VIP“ Quant Trading Firms Named
The three „VIP“ quant trading firms named by the CFTC in its lawsuit against Binance have been reportedly revealed to be Radix Trading, Jane Street, and Tower Research. Radix is identified as „Trading Firm A“, while Jane Street and Tower Research are „Trading Firm B“ and „Trading Firm C“, respectively. All three firms are based in the US but use offshore entities to trade on the platform.
Details of Each Firm
Radix Trading is a Chicago-based firm with offices in other parts of the world, including Amsterdam. It serves as both a trading firm and research firm. Meanwhile, Jane Street is a quant trading firm with multiple offices across various locations such as New York and Singapore, known for providing sophisticated analysis and liquidity services. Tower Research offers high-frequency algorithmic trading with headquarters in New York City.
Preferential Treatment From Binance
The three institutional trading firms received „VIP“ treatment from Binance according to the lawsuit, including lower transaction fees and faster access for trades in return for providing liquidity on their exchanges via offshore entities. Responding to news reports, Radix co-founder Benjamin Blander stated that they did not violate any laws by trading on Binance via offshore entities and they are cooperating with the CFTC investigation accordingly.
Jane Street declined to comment while Tower did not respond to requests for comment; however, Binance said it had boosted compliance measures since then, expressing disappointment at being accused by CFTC’s accusations of law violations.