The US Department of Justice is reportedly investigating Binance for possible violations of sanctions against Russia. The Department of Justice’s national security division is investigating stock market officials to determine if sanctions were evaded. Binance is currently facing criminal investigation for allegedly engaging in illegal activities, including money laundering. Here are the details…
Binance investigation from the USA
According to reports, the Department of Justice’s national security division has launched an investigation to check whether Binance or several of its officials have evaded sanctions linked to the Russian invasion of Ukraine. Bloomberg sources confirmed that this investigation was previously unreported and is progressing along with an existing investigation initiated by the criminal division. The United States Department of Justice (DoJ) is reportedly investigating the world’s largest crypto exchange for potential violations of sanctions against Russia in light of the conflict in Ukraine. The purpose of the investigation is to determine whether Binance Holdings Ltd was being used illegally to allow Russians to evade US sanctions and move money through the crypto platform.
According to a report by Bloomberg, the national security division of the Ministry of Justice is investigating Binance to see if the crypto exchange complied with the sanctions imposed on Russia following the invasion of Ukraine. Five people familiar with the matter told Bloomberg that exchange officials are under scrutiny as part of an ongoing investigation into the company’s behavior. While the Justice Department declined to comment on the ongoing investigation, Binance told Bloomberg that the company is in full compliance with all US and international financial sanctions. The exchange added that it has implemented industry-leading know-your-customer (KYC) protocols, in addition to a zero-tolerance policy for double registrations, anonymous identities, and uncertain sources of funds.
Announcement from Binance
In a statement on the subject, Binance mentioned that in 2021, Binance launched an initiative to completely overhaul its corporate governance structure. He pointed out that he has brought in a staff of experienced managers from around the world to fundamentally change the way Binance operates globally. that is, he underlined the importance of compatibility. On the other hand, Binance CEO Changpeng Zhao has not yet responded to these allegations. It is expected to address this issue to reduce FUD. This investigation comes when the crypto market is in a sort of relief rally and is recovering from the terrible crashes and bankruptcies of the past.
A person close to the investigation explained that as of now, there is no indication that the Ministry of Justice is preparing to reach a settlement with the crypto exchange. However, some investigations can be opened without formal charges being filed. The latest investigation adds to an existing criminal and regulatory investigation into the exchange’s behavior. The news came a day after Reuters reported that the exchange was hosting accounts linked to some terrorist organisations. In particular, Senator Elizabeth Warren touched on Binance’s role in handling cryptocurrencies from Iran’s Revolutionary Guards on May 4.
Sources from Bloomberg said that Binance had previously spoken to the Justice Department to resolve other compliance-related issues, notably the ignoring of Iran sanctions. On the other hand, as we reported as Kriptokoin.com, the US Commodity Futures Trading Commission (CFTC) filed a criminal complaint against Binance on March 27. He claimed that Binance allowed users to access commodities illegally.
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