Jim Cramer and the CFTC’s Relationship with Binance
Jim Cramer is an American television personality, best known for his stock market investment advice through his CNBC show Mad Money. In March of 2020, the Commodity Futures Trading Commission (CFTC) announced that it had received a complaint from Jim Cramer about potential manipulation in certain digital assets traded on Binance, a popular cryptocurrency exchange platform.
The CFTC charged Binance with failing to register as a derivatives dealer and also alleged that the company engaged in wash trading—the practice of artificially inflating trading volumes by entering buy and sell orders simultaneously with no intention of executing them—as well as spoofing—entering large orders into the order book only to cancel them shortly before they are filled. These activities violate US federal regulations since they can be used to manipulate prices and mislead investors. The CFTC also stated that these activities could have been taking place since 2018 when Binance first launched its operations in the United States.
At this time there is no public information regarding any enforcement action taken against Binance or if any settlement has been reached between Jim Cramer and/or the CFTC and Binance regarding this matter. It remains unclear whether or not Jim Cramer will receive some form of compensation from either party for bringing attention to possible unlawful activity on their platform.
