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Binance Reportedly Investigated in US for Violating Russia Sanctions – Exchange Bitcoin News
Cryptocurrency exchange Binance is facing a US investigation over suspected violations of sanctions against Russia, according to a media report. The investigation is looking into whether the trading platform was used by Russians to circumvent economic restrictions imposed over Moscow’s invasion of Ukraine.
Crypto exchange Binance is facing another US probe, sources say
The US Department of Justice (DOJ) is trying to determine whether Binance Holdings, the operator of the world’s largest crypto exchange, has been used to allow Russians to evade Western sanctions, Bloomberg revealed, citing multiple sources familiar with the matter.
The department’s national security division is looking into whether the company or its officials violated restrictions imposed in relation to Russia’s invasion of Ukraine as part of a confidential investigation, according to five people who spoke on condition of anonymity.
“The probe, which has not previously been reported, is moving on a parallel track to an existing investigation by the crime branch, one of the people said,” the report said, noting that the move adds a new layer of scrutiny to the troubled the industry’s leading exchange.
The news comes after Russian crypto media reports in late April suggested that Binance had quietly lifted some restrictions on Russian users. According to the information published by various news channels, Russians can once again use their bank cards to make deposits, and the trading platform has canceled a limit on their balances introduced in accordance with EU sanctions.
Binance has been in talks with the DOJ in an effort to resolve complaints related to earlier allegations that it was used to circumvent sanctions against Iran before imposing stricter compliance controls, Bloomberg added, citing another person familiar with the development . In a statement, the company emphasized that it fully complies with all US and international sanctions, elaborating:
In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a world-class bench of experienced executives to fundamentally change how Binance operates globally.
It also pointed out that its know-your-customer protocols rival any in the traditional banking system, and every Binance user is required to pass these procedures that include country of residence verification and personal identification verification.
“Our policy imposes a zero-tolerance approach to double registrations, anonymous identities and obscure sources of funds,” the exchange stressed. The US Department of Justice has so far refused to comment.
Binance has been the focus of other US investigations, including an investigation into its compliance with anti-money laundering requirements led by the Internal Revenue Service and a lawsuit filed by the Commodity Futures Trading Commission. The Securities and Exchange Commission has investigated whether the platform supported trading in unregistered securities.
What are your thoughts on the report of another investigation against Binance in the US? Share them in the comments section below.
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