Important fast food
- US prosecutors have requested documents from Changpeng “CZ” Zhao and other Binance executives relating to the exchange’s anti-money laundering controls and communications dealing with compliance issues.
- Confirming the claims made in a Reuters report on the matter, Zhao said his team “voluntarily” handed over the files upon request.
- Binance has refuted several allegations made by Reuters about the company’s trading practices in recent months.
The Ministry of Justice has reportedly requested company records, which have been classified as “Documents.” [to] destroyed, altered, or removed from Binance files” or “transferred from the United States”.
The Ministry of Justice has requested files from Czechoslovakia
US prosecutors have asked Binance to submit documents detailing anti-money laundering controls, as well as communications that include company CEO Changpeng “CZ” Zhao.
The Department of Justice asked Czechoslovakia, 12 exchanges and other partners to disclose communications that discussed how the exchange handled illegal transactions and recruited US clients, Reuters reported Thursday, citing a request from December 2020. It also asked the company to share records of files that have been flagged. . as such “document [to] destroyed, altered, or removed from Binance files” or “transferred from the US.” According to the report, prosecutors requested 29 documents about the company’s management, structure, finances, business and compliance practices dating back to 2017.
The request came as part of an investigation into Binance’s compliance with US financial regulations. According to several sources familiar with the matter, the US authorities wanted to investigate whether Binance violated the Banking Secrecy Act. The law requires cryptocurrency exchanges to register with the Treasury and comply with anti-money laundering regulations. Violation of the law can result in up to 10 years in prison.
In response to a Reuters request for comment, It’s a “standard process” for regulators to gain access to regulated crypto organizations, said Binance’s head of communications, Patrick Hellman. “We work regularly with agencies to resolve any issues they may have.”
Czechoslovakia too confirmed The allegations made in the report were posted on Twitter on Thursday, which says the exchange handed over the information voluntarily. US attorneys general made “a request to voluntarily share certain information in 2020, which we did,” he wrote, adding that it was “important for the industry to build trust with regulators.”
Binance refutes Reuters allegations
Over the past year, Reuters has published a number of investigative articles containing malicious allegations against Binance, but the exchange has repeatedly refuted these allegations. In July, a Reuters report alleged that Binance had evaded US sanctions to serve Iranian customers, to which CZ responded that the company was using Reuters’ KYC product to verify customers. A month earlier, Reuters alleged that criminals used Binance to launder $2.35 billion in stolen funds. cipher feed I contacted Binance about the matter at the time, with a representative saying that the report used “outdated information and unverified personal credentials as a crutch to establish a false narrative.” Binance also posted Blog post In April, it denied allegations in a Reuters report that it had handed over data to Russian authorities.
Binance is the world’s largest cryptocurrency exchange, handling about $60 billion in daily volume, according to Nomics data. Since its launch in 2017, it has experienced exponential growth with increased demand for digital assets. In 2021, it faced intense scrutiny from regulators around the world over its practices, and came under fire for allegations that it served clients without registering in jurisdictions, and for failing to comply with anti-money laundering controls. Binance introduced several regulatory compliance measures in response, including reducing the leverage range from 100x to a maximum of 20x and introducing stricter identification checks for account registration.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.