Former Binance Chief Compliance Officer Samuel Lim has agreed to a settlement with the Commodity Futures Trading Commission (CFTC) to resolve charges of willfully aiding and abetting Binance’s violations of the Commodity Exchange Act (CEA). The proposed consent order, submitted to U.S. District Judge Manish Shah in the Northern District of Illinois, includes a $1.5 million civil monetary penalty and a permanent injunction.
The CFTC alleges that Lim knowingly undermined Binance’s internal control environment to retain U.S.-based customers, despite being aware that doing so subjected both himself and the company to U.S. regulation. The complaint, originally filed on March 27, details how Lim facilitated Binance’s illegal offering and execution of commodity derivatives transactions to U.S. customers, often without requiring identity verification.
According to the CFTC, Binance and Lim employed tactics to evade U.S. derivatives laws, including utilizing communication applications designed to automatically delete evidence of illicit activity. The agency asserts that Binance’s compliance program was intentionally ineffective, serving only as “window dressing” to mask the company’s non-compliance.
“We take seriously the role corporate gatekeepers play in maintaining integrity in the markets we regulate, including digital asset markets,” stated Ian McGinley, CFTC’s Director of Enforcement. “Chief compliance officers should take note of today’s proposed order: If your compliance program is merely ‘for show’ and is intentionally ineffective, the CFTC will hold you accountable for facilitating illegal conduct.”
The proposed order permanently prohibits Lim from acting as an unregistered futures commission merchant (FCM), operating an illegal digital asset derivatives exchange, and failing to implement adequate “know-your-customer” compliance controls. The settlement is contingent upon court approval. This action follows a broader CFTC investigation into Binance and its affiliates, detailed in CFTC Press Release No. 8825-23.
The case was led by CFTC staff including Candy Haan, Joseph Platt, Joseph Patrick, and Katherine Paulson.
Source: CFTC.gov
Related Federal Cases
- Jevon M. Jenkins, Aiding and Abetting Kidnapping, East St. Louis IL… · Illinois
- Eric Holub, Tax Withholding Fraud, Cedar Rapids IA, 2023 · Illinois
- Terry L. Gantt, ID Theft and Wire Fraud, Cedar Rapids IA, 2012 · Illinois
- Abel Hernandez-Labra, Passport Fraud, Hampton IA, 2023 · Illinois
- Princess L. Eatmon, Student Loan Wire Fraud, Albany GA, 2023 · Illinois
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News