The news earlier this week that the Commodity Futures Trading Commission (CFTC) is suing the largest crypto exchange in the world, Binance, and its CEO Changpeng “CZ” Zhao, could have rocked crypto markets.

Instead, the prices of Bitcoin and Ethereum briefly wobbled after the news broke on Monday, then recovered. Bitcoin (BTC) is up 3% over the past week to $28,410 as of Saturday morning, and Ethereum (ETH) is up 4.2% to $1,825.

Most of the top thirty cryptocurrencies are in the same boat, with no substantial change in either direction over the last seven days, but two names posted hefty rallies: Stellar (XLM) leaped 22% and currently trades at nearly $0.11, while XRP blew up 20% to $0.53 thanks to “investor hope” among the XRP army that Ripple’s endless case with the SEC might go Ripple’s way.  

The CFTC is the United States’ leading derivatives regulator. According to the lawsuit filed with a Chicago federal court, the federal agency accuses Binance of unauthorized derivatives trading by offering futures, swaps, and options on many leading cryptocurrencies. 

The suit claims the exchange is offering these services to U.S. clientele despite not having registered with the regulator. It added: “Binance has taken a calculated, phased approach to increase its United States presence despite publicly stating its purported intent to ‘block’ or ‘restrict’ customers located in the United States from accessing its platform.”

Other allegations in the suit accuse the exchange of having insufficient anti-money laundering (AML) and know-your-customer (KYC) controls, knowingly evading or helping U.S. clients evade regulators, and, rather damningly, trading against its own customers.

For its part, Binance told Decrypt on Monday that the lawsuit is: “unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years.”