![]() The crypto giant disputed the report, adding that the calculations and claims of its compliance control weren't accurate. A Binance spokesperson told Insider that it would be "inappropriate for us to comment" on matters related to the DOJ.Īdditionally, Reuters reported that Binance processed over $10 billion in illegal payments this year, and sought to "evade" regulators. The DOJ has also discussed potential plea deals with Binance's legal team, the report said. US prosecutors are looking into Binance on money laundering conspiracy, unlicensed money transmission, and criminal sanctions violations, four sources told the news outlet. The CFTC said it is seeking monetary penalties, disgorgement of ill-gotten gains and permanent trading and registration bans.The US Department of Justice is reportedly investigating the world's largest cryptocurrency exchange, Binance, according to Reuters. The house accounts were exempt from Binance's "insider trading" policy, the CFTC said.Ī top Binance executive told the Wall Street Journal in February that the company expected to pay penalties to resolve the U.S. value for some data fields in Binance's internal database with "UNKWN", it said.īinance traded on its own platform through some 300 "house accounts," directly or indirectly owned by Zhao, though the exchange had not disclosed this activity in its public terms of use or elsewhere, according to CFTC. In October 2020, Zhao directed Binance personnel to replace the U.S. customer base secret from some senior managers, CFTC said. Zhao kept information reflecting Binance's U.S. customers from trading on its platform, the CFTC said Binance told its commercially valuable U.S.-based "VIP customers" how to evade its compliance controls. Though Binance's global business publicly said it was restricting U.S. The CFTC said when Zhao hired BAM's first CEO, he "described Binance as a pirate ship and explained that he wished for Binance.US to be a navy boat." VIP CUSTOMERS ![]() Reuters previously reported that this American firm, BAM Trading, was in fact controlled by Zhao and managed by Binance as a de-facto subsidiary. exchange in 2019 to serve American customers in compliance with U.S. customers even after the company, in partnership with a purportedly independent American firm, launched a U.S. ![]() The CFTC's complaint detailed Binance's efforts to retain U.S. The CFTC charged the holding company and two other Binance units.īinance did not require customers to submit information verifying their identity before trading and "failed to implement basic compliance procedures designed to prevent and detect terrorist financing and money laundering," the CFTC said. With a holding company based in the Cayman Islands, Binance has never revealed the location of its core exchange. ![]() Trading volumes hit $34 trillion in 2021, Zhao said last year. Its core exchange processed trades worth about $23 trillion last year, according to data provider CryptoCompare. 'PIRATE SHIP'įounded in Shanghai in 2017, Binance sits at the heart of the global crypto industry. The fourth item on the list was "Ignore FUD, fake news, attacks," using an acronym for "fear, uncertainty and doubt" often used in crypto in relation to news perceived as negative. In a tweet on Monday afternoon, Zhao wrote "4" - a reference to a previous post listing his "Do's and Don'ts" for 2023. REUTERS/Benoit Tessier Acquire Licensing Rightsīinance's cryptocurrency BNB, the world's fourth largest by market size, dropped around 4% on the news. Zhao Changpeng, founder and chief executive officer of Binance, at the Viva Technology conference in Paris, France June 16, 2022.
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