May 18, 2024

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Binance is facing US investigations over a possible breach of its…

Binance is facing US investigations over a possible breach of its…

Bloomberg – Binance Holdings Ltd. , the world’s largest cryptocurrency exchange, It is being investigated by the Ministry of Justice (DOJ) for the possibility of existence Unlawfully used by the Russians to circumvent sanctions And the Americans transfer their money in this way, according to informed sources.

his investigation Department of Homeland Security, Ministry of Justice check If the company or its officials Five sources familiar with the matter said, who asked not to be mentioned because it is a classified investigation, whether or not it violated sanctions related to the Russian invasion of Ukraine.

One of the sources indicated that the aforementioned investigation, which has not been reported so far, Progress in parallel with the one already underway by the criminal department. This fact adds a new level of scrutiny to the operator of the largest cryptocurrency exchange on the planet, while the cryptocurrency sector has been rocked by an impressive wave of bankruptcies and high-profile scandals.

The company has been in discussions with the Department of Justice to resolve past complaints regarding the cryptocurrency exchange To circumvent sanctions against Iran before To apply strict compliance mechanisms, another source familiar with the process reported.

Binance said in a statement that the company corresponds perfectly With all US and international financial sanctions.

In 2021, Binance Launched an initiative to review the entire corporate governance structureincluding adding a bank of world-class, experienced executives, to fundamentally change the way Binance operates globally.”

protocols “know your customer” Binance said the company’s accounts rival any accounts in the traditional banking system and each customer must submit to checks that include country of residence and personal checks.

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“Our policy is zero tolerance for double registrations, anonymous identities, and mysterious sources of money,” Binance added.

The Justice Department declined to comment.

binance Already fighting With numerous criminal and organizational investigations. One of the largest US measures to clamp down on the cryptocurrency industry came in March, when the Washington-based derivatives regulator alleged that Binance had broken its rules for years.

The Internal Revenue Service (IRS), as well as federal prosecutors, Compliance has been reviewed from Binance with anti-money laundering obligations, Bloomberg News reported. The Securities and Exchange Commission (SEC) examines whether an exchange has supported trading in unregistered securities.

Binance said it takes its legal obligations seriously and is cooperating with regulators and law enforcement.

Co-founder of Binance Changpeng ZhaoAnd He challenged several of the alleged issues in the civil action It was filed in March by the Commodity Futures Trading Commission (CFTC).

In a blog post at the time, Zhao said the CFTC complaint “appears to contain an incomplete statement of facts.”

Binance has involved law firms including Gibson Dunn & Crutcher and Latham & Watkins in the high-stakes standoff with the CFTC.

Not all investigations lead to formal complaints These irregularities and complex investigations can take time. There is no indication at this time that the DOJ is preparing to reach an agreement with Binance, such as a no-prosecution deal or a deferred trial, one of the people said. The company can negotiate with the government the terms of the agreement, depending on the facts of the case.

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The chief strategy officer said that Binance had closed loopholes in its regulatory compliance. Patrick Hillman, in an interview in February. He said the company is in liquidation talks with US regulators, but did not specify a timeline or potential liquidation amounts.

Co-founded by Zhao in Shanghai in 2017, Binance Turned into a brokerage, digital wallet, investment fund, escrow service, data provider, digital art market, token issuer, all in one. While the company does not have an official headquarters, it has established major centers in Dubai and Paris.

No action against Binance It will affect the entire industry of cryptocurrencies. After the collapse of the FTX empire last year Sam Bankman FriedBinance has consolidated its dominance as the largest cryptocurrency exchange, accounting for 53% of all spot transactions in March, according to data from researcher CCData. In a popular commodity known as perpetual futures, Binance controlled 62% of global volumes in 2022, according to a CoinGecko report.

With assistance from Yueqi Yang and Sarbina Willmer.

Read more at Bloomberg.com