May 8, 2023

US Investigates Binance’s Allowance of Russians to Evade Sanctions



Binance Holdings, the operator of the world’s largest cryptocurrency exchange, is under investigation by the US Department of Justice (DOJ), according to Bitcoin News.

The DOJ’s national security division investigates whether Binance allowed Russians to circumvent the Western sanctions, five people who chose to remain anonymous told Bloomberg.

“The probe, which hasn’t previously been reported, is moving on a parallel track with an existing inquiry by the criminal division,” one of the five people said, a move which adds more scrutiny to the leading crypto exchange.

In April, Binance reported that it has lifted certain restrictions on Russian users by letting them use their bank cards to make deposits and removing limits on their balances which was introduced in compliance with European sanctions.

Already, Binance is in talks with the US Department in a bid to resolve complaints which are related to evading sanctions against Iran before introducing stricter compliance controls as the company asserted that it fully adheres to the US and international sanctions.

“In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a world-class bench of seasoned executives to fundamentally change how Binance operates globally,” Binance said in a statement.

Earlier, the US Commodity Futures Trading Commission (CFTC) accused the prominent crypto exchange of manipulating the market overall. The US financial regulator has accused Binance and its CEO of illegally operating the country in a lawsuit that seeks fines and an injunction against the world’s prominent crypto trading exchange.

It also accused Binance CEO Changpeng (CZ) Zhao of ignoring the US laws regarding the registration and regulatory requirements, saying it does extensive solicitation of and access to US customers.

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