The US is investigating Binance for potential Russian sanctions violations
- Binance is under investigation by the US Department of Justice.
- The investigation is for possible sanctions violations related to Russia’s invasion of Ukraine.
- A former senior SEC official told Binance users to exit the exchange.
The largest crypto exchange, Binance Holdings Ltd. , for investigation by the National Security Division of the US Department of Justice (DOJ) regarding possible violations of US sanctions related to Russia’s invasion of Ukraine.
This development was captured in a Bloomberg report. She noted that the Department of Justice wanted to confirm whether Binance or the company’s official was illegally used to allow Russians to circumvent US sanctions and move funds through the exchange.
However, Binance claims to comply with all US and international financial sanctions in a statement. While arguing that KYC standards rival the traditional banking system, Binance maintains that it has zero tolerance for shadowy sources of funds.
The text of the statement from Binance reads as follows:
“Our policy enforces a zero-tolerance approach to double registrations, anonymous identities, and shadowy sources of funds.”
Interestingly, the Binance investigation sparked yet another round of fear, uncertainty and doubt (FUD) in the cryptocurrency industry. A former senior official of the Securities and Exchange Commission (SEC) recently asked Binance users to exit the exchange.
Binance’s future is in jeopardy, at least that’s my opinion. Having worked as an SEC law enforcement attorney for 18 years, I’m trained to spot red flags. When I read about Binance, I see a lot of red flags. Lack of reliable and trustworthy information just keep in mind… pic.twitter.com/hXFahhwZuo
– John Reed Stark (@JohnReedStark) May 2, 2023
Notably, the latest investigation is running in parallel with an existing criminal department investigation, adding a new layer of scrutiny to Binance. Previously, Binance had been in talks with the Department of Justice to resolve complaints that the exchange was being used to evade sanctions against Iran.
Moreover, the investigation is part of a broader crackdown by the US government on cryptocurrency exchanges, which are sometimes used to launder money and commit other financial criminal activities. In recent months, the Department of Justice has charged several cryptocurrency exchanges with violations of penal laws and money laundering.
The post that the US is looking into Binance for potential Russian sanctions violations first appeared in Coin Edition.