The US Commodity Future Trading Commission (CFTC) has filed a civil lawsuit against Binance, its founder and CEO Changpeng Zhao, and three other entities over alleged violations of the Commodity Exchange Act (CEA) and CFTC regulations.

The complaint alleges that Binance offered to execute commodity derivative transactions without registering as a futures commission merchant and failed to diligently supervise its activity.

The lawsuit seeks disgorgement, civil penalties, and permanent injunctions against the defendants.