Reuters reports that Binance's defense attorneys have argued, among other things, that "a criminal prosecution would wreak havoc on a crypto market already in a prolonged downturn." Well then.
U.S. Department of Justice is considering filing criminal charges against Binance
Reuters has reported that the U.S. Department of Justice is considering filing criminal charges against Binance executives, including CEO Changpeng Zhao ("CZ"). This comes as a part of a four-year-long criminal investigation into money laundering and sanctions evasions. According to Reuters, DoJ prosecutors are "split" on whether to take aggressive actions against Binance executives, or to spend more time reviewing evidence.
Report claims that Binance served Iranian customers in violation of sanctions
The latest Reuters investigation into Binance has alleged that the company processed transactions for Iranian users, despite U.S. sanctions and the company's claim to be compliant with them. Iranian traders interviewed by Reuters stated that they were able to take advantage of Binance's poor KYC checks to use the service despite the sanctions.
The usage of the exchange by residents of sanctioned countries could draw the attention of US regulators. It's also the latest in several investigative reports by Reuters into Binance, in addition to a June report that the exchange facilitated $2.35 billion in illicit transfers from 2017–2021, and an April report that Binance supplied the Putin regime with information about crypto donors to opposition leader Alexei Navalny.
Reuters reports that Binance facilitated $2.35 billion in illicit transfers from 2017–2021
A Reuters investigation alleged that Binance "served as a conduit for the laundering of at least $2.35 billion in illicit funds" between 2017 and 2021. Binance is the largest cryptocurrency exchange in the world. Reuters tracked hundreds of millions in funds passing through a Russian darknet drugs market called Hydra thanks to Binance, and pointed to Binance as facilitating the laundering of money from German investment fraud schemes and North Korean cybercrime groups.
Binance gave Putin regime information on users who donated to opposition leader Alexei Navalny
Binance, the largest cryptocurrency exchange, shared customer data with the Russian government according to a Reuters special report. Reuters detailed how Binance provided the Russian government's financial monitoring service with data on Binance users who donated to Alexei Navalny, an anti-corruption activist and prominent opponent of Putin. Reuters reported this was part of a broader effort by Binance to form allegiances with Russian governmental agencies as it worked to expand its footprint in Russia.
Navalny has been imprisoned in Russia since returning in January 2021, shortly after recovering from poisoning: an attempt on his life reportedly ordered by Putin. While in prison, Navalny's foundation has encouraged people to donate cryptocurrency using Binance. They have raised more than 670 Bitcoin ($28 million) so far, despite the Russian government outlawing the foundation and labeling it a terrorist organization. Donors to Navalny's cause now face potentially serious danger as they've been identified to the Putin regime by Binance.
Crypto proponents have long promoted the technology's potential to fund individuals who are targeted by oppressive regimes, and to allow anonymous and untraceable donations.