The largest cryptocurrency exchange Binance and its top executives may face charges from U.S. prosecutors, which include sanctions violations and money laundering, the latest development in a probe that began in 2018 and gained grounds during the collapse of FTX which shook the industry.
Founder of Binance Changpeng “CZ” Zhao is among the targeted executives, according to a report from Reuters, which cited individuals familiar with the matter. However, the Department of Justice officials are undecided, about whether to proceed with the investigations, as some of them want more time to enable them to review evidence.
KEY THINGS TO NOTE:
Having investigated major crypto exchange Binance for over a year. It is said that U.S. federal prosecutors are looking at filing charges of money laundering.
And if this were to occur, the long-running Binance case could add further problems to an already rattled crypto industry.
CEO of Binance CZ dismissed the talk as fear, uncertainty, and doubt, known as “FUD.”
Zhao Defends The Operations Of Crypto Exchanges.
As to reports, there are three Justice Department offices involved in this case, the Money Laundering and Asset Recovery Section (MLARS), the National Cryptocurrency Enforcement Team, and the US Attorney’s Office for the Western District of Washington in Seattle. The defense attorneys hired by Binance have met with DOJ officials about a possible plea deal, per the report.
On the 12th Of Dec. In a thinly veiled tweet, Zhao, 45, said: “Ignore FUD. Keep building!”
The exchange also tweeted against the information passed across by the reporters at Reuters, saying they “had it wrong again.”
Also in a blog statement. Binance made it known that it was “possibly even the strongest in the entire financial sector” in terms of security.
The Role of Binance in the Crypto World
Binance and CZ have been largely instrumental and played a huge role in reacting to the recent collapse of the FTX exchange, which shook the industry. At first, when the rumors of FTX’s insolvency began to circulate, Binance pulled a move that undermined its now-bankrupt rival by pulling a plug on $529 million in FTX token holdings. In terms of trying to bring further transparency and guidance to other industry participants, Zhao has been a leader.
The Conclusion
In a blog post earlier this year, Binance pointed out that amongst all cryptocurrency transactions carried out in 2021, only 0.15% were related to some type of illegal activity.
While this might give some kind of hope to investors, it can’t be denied that the authorities are breathing down on the necks of crypto firms, especially after the FTX collapse.
Featured Image Source: Clayton News Daily
