12/28/2023 0 Comments Binance investigation![]() ![]() ![]() The US Justice Department has been investigating Binance for alleged criminal sanctions violations and money laundering with some prosecutors believing they have sufficient evidence to charge Mr Zhao and other top executives.īinance said at the time it did not have any insight into the inner workings of the justice department. "Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law," SEC Chair Gary Gensler said. ![]() That dream is now looking more distant after the SEC's action. "The idea that a five-year-old start-up could mature and operate at the same level as a financial institution that has been around for 200 years was once impossible to fathom," the billionaire wrote in January in a review of the previous year. This year, Mr Zhao felt a major goal was almost within his grasp: a seat at the top table of finance. The 46-year-old chief executive did not waver in his belief as he built up his crypto exchange. "We want to take over the entire market!" he told staff in a company chat group that year. In response to the SEC's allegations, Binance said: "We intend to defend our platform vigorously," adding that "because Binance is not a US exchange, the SEC's actions are limited in reach."īinance said any allegations that user assets have been at risk "are simply wrong".Įver since he launched Binance in Shanghai back in 2017, Mr Zhao dreamt big. Mr Zhao's towering ambitions are now coming up against the concerted efforts of US regulators to rein in a company that they allege has grown to a colossal size by systematically evading US laws. The billionaire tycoon already faces charges from the US Commodity Futures Trading Commission (CFTC), filed in March, and his exchange has been under investigation by the Justice Department too. The complaint further threatens Mr Zhao's vast business empire, which for years has dominated the crypto industry. These range from allegedly manipulating Binance's trading volumes and failing to restrict US customers from its unregulated platform to commingling and diverting billions of dollars in customer funds "as they please". The company has warned that its operations will “grind to a halt” if a US judge grants the regulator’s request for an asset freezing order.The commission has accused Binance founder Changpeng Zhao of operating a "web of deception," charging him and his exchange with 13 offences. ![]() Separately, the company’s US platform, Binance.US, which is owned by its chief executive, Changpeng Zhao, is in talks with the SEC to avoid a total asset freeze. We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards,” said the spokesperson.īinance is under pressure from regulators in the US and is being sued by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission after allegations of trading in crypto assets and derivatives without the appropriate regulatory approval. Binance, as always, was fully collaborative and we met our obligations accordingly. “We had an on-site visit last week by the relevant authorities. Binance was registered with France’s Financial Markets Authority in May 2022.Ī Binance spokesperson confirmed that the company had been visited by French authorities last week. In France, Le Monde newspaper reported that prosecutors were investigating Binance because of its anti-money laundering procedures and the fact that it advertised its services in the country before it was registered with the financial markets regulator. It advised users in the Netherlands to withdraw funds from their accounts. A spokesperson for the company said: “Binance has been in a comprehensive registration application process as a virtual asset service provider (Vasp) with the Dutch regulator … Unfortunately, this has not resulted in a Vasp registration in the Netherlands at this time.”īinance said that from 17 July, Dutch residents would only be able to withdraw their assets from the platform and further trading or deposits would not be possible. ![]()
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