The world’s largest cryptocurrency exchange Binance has been accused of money laundering and violating criminal sanctions.
According to the Washington Post, US prosecutors have requested investment companies to provide records related to the Binance exchange recently, after being discovered to have unusual transactions. Currently, Binance is facing a number of charges and is under investigation for acts: unlicensed money transfer, money laundering conspiracy, and sanctions violation.
The US Department of Justice has launched an investigation related to money laundering, targeting billionaire Changpeng Zhao (CZ) – the founder and CEO of Binance. The world’s largest cryptocurrency exchange is required to voluntarily hand over messages from CZ and 12 leaders, and many partners in transactions and user development in the US.
In the filing released by the Justice Department, Binance had instructions to “destroy documents, change and delete information from the system”. The content that was determined to be transferred from the US was also in the sights of the functional forces. Under the US Bank Secrecy Act, cryptocurrency trading operations must be registered with the US Treasury Department and can carry a prison sentence of up to 10 years for violations.
The Washington Post also quoted Patrick Hillmann, chief strategy officer of Binance, as admitting that there were gaps in regulatory compliance early in its operation. However, the situation has improved and the company now has a team that takes training courses at the Association of Certified Sanctions Professionals (ACSS).
Binance is the world’s largest cryptocurrency exchange, present in more than 100 countries. Information about signs of legal violations and anti-money laundering measures from the unit is adversely affecting users, especially after the collapse of FTX – the world’s second-largest cryptocurrency exchange and its operators The company is facing criminal charges.