Is Binance in trouble again? This latest report could add smoke to the fire…
- The DoJ is reportedly probing Binance on whether or not it enabled the evasions of sanctions placed on Russia
- The report comes days after the exchange was accused of lifting trade restrictions placed on users based in Russia
Binance – the world’s largest crypto exchange by trade volume – has come under the radar of yet another U.S. regulatory authority. The US Department of Justice’s (DoJ) national security division is reportedly investigating the crypto exchange’s connection with Russia.
Regulators’ Eyes on Binance
According to a report by Bloomberg, the DoJ is particularly looking into whether Binance was used as a gateway by Russians to evade US sanctions. Moreover, this investigation is expected to go hand-in-hand with another ongoing investigation. Note that the other investigation will also be carried out by the criminal branch of the DoJ.
However, the Justice Department has not accused Binance or its employees of any wrongdoings, the report stated.
Notably, this investigation comes days after a report claimed that the exchange had lifted restrictions on users’ logging from Russia. A report by Forklog stated that Russian cardholders could deposit British pounds, euros, Australian dollars, Lira, and more into their accounts. However, Binance confirmed that the restrictions are still in place.
The report also stated that Binance has been holding dialogues with the DoJ with regard to a case involving Iran. This relates to the exchange being used as an avenue to move money by Iranians, despite sanctions placed on the country. Moreover, the incident occurred despite Binance alerting its traders in Iran that it would no longer provide any services to them.
Interestingly, the senior employees of Binance were reportedly fully aware of this event, and even joked about it, according to an investigation by Reuters. Notably, the incident took because of weak compliance control.
Addressing the matter, a Binance spokesperson asserted that the exchange complies with all US and international sanctions. Additionally, the exchange claimed that its Know-Your-Customer (KYC) procedure was on-par with the traditional financial system.
The spokesperson also stated,
“Our policy imposes a zero-tolerance approach to double registrations, anonymous identities, and obscure sources of money”.
The statement further read,
“In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a world-class bench of seasoned executives to fundamentally change how Binance operates globally”