Key takeaways:
- US prosecutors are considering charging Binance and its executives with potential money-laundering offences.
- In a statement, Binance denied the assertions made.
According to Reuters, the U.S. Justice Department is considering taking legal action against Binance CEO Changpeng “CZ” Zhao and the largest cryptocurrency exchange in the world for failing to conform to American embargo and anti-money laundering regulations.
The objective of the inquiry, which was launched in 2018, is whether Binance complies with American anti-money laundering laws and sanctions. According to two of the sources, several of the at least six federal prosecutors working the case feel that the information previously acquired supports taking serious action against the exchange and charging certain officials, including the founder Changpeng Zhao, with crimes. The insiders say that others have urged for taking the time to consider further evidence.
The severely unstable cryptocurrency industry is playing with fire. Binance’s hold on the market might be eroded if Zhao and Binance are found to be guilty. Because of the most recent failure of competitor exchange FTX, its grip has become stronger.
Binance allegedly argued that a criminal prosecution would have detrimental ramifications on a crypto market already recovering from the tremors of Terra and FTX crashes in conversations with DOJ officials regarding prospective plea agreements.
Binance asserted that “Reuters has it incorrect again” and that “We don’t have any insight into the inner workings of the US Justice Department, nor would it be proper for us to comment if we did” in a remark that was posted on Twitter.
This time, the community has been aggressively siding with Binance, with many stating that Reuters only provides the manipulated version of events rather than reporting the actual facts.
It is alleged that Reuters is employing calculated strategies to harm Binance’s credibility and sow further worry in the already uneasy cryptocurrency market.
In a statement, Binance disputed the Reuters article. The exchange’s global head of intelligence and investigations, Tigran Gambaryan, said that since November 2021, Binance has “responded to over 47,000 law enforcement demands.“
It is also significant to note that Binance was the first blockchain and cryptocurrency business to join the National Cyber-Forensics and Training Alliance, and that it has attended in over 70 anti-cybercrime workshops with international law enforcement (NCFTA)
Regulators are doing a thorough examination of each cryptocurrency company against many of the same vulnerabilities, as has been publicly documented.
“This emerging sector has expanded swiftly, and Binance has demonstrated its dedication to security and compliance by making significant investments in both our personnel and the equipment and technology we use to spot and prevent criminal conduct ” a representative for Binance stated.
