Reporter Jung Hye-in of Money Today | 2023.05.06 14:38
Bloomberg reports, citing multiple sources
It is known that the United States Department of Justice is investigating allegations of violation of Russian sanctions against Binance, the world’s largest virtual asset (cryptocurrency) exchange.
On the 5th (local time), Bloomberg News, citing multiple sources, said that the US Department of Justice is investigating allegations that Binance is a conduit for evading sanctions against Russia. Sources who requested anonymity said the Justice Ministry’s national security division is investigating whether Binance or its officials violated sanctions against Russia in connection with Russia’s invasion of Ukraine, and that the criminal division is also conducting related investigations. . Whether Binance was used as a means of moving illegal money in Russia is at the heart of the investigation.
Binance is an exchange founded in Shanghai, China by Chinese-Canadian Zhao Changpeng. However, its headquarters is not in Shanghai and its main office is in Singapore. The company’s paper address is the Cayman Islands, a tax haven. According to cryptocurrency data provider CCData, Binance’s spot trading volume accounted for 53% of the total in March.
Binance has been identified as the subject of various suspicions related to US sanctions. In July last year, he was suspected of breaching US sanctions and conducting an exchange business in Iran. The US Securities and Exchange Commission (SEC) is investigating whether Binance has violated the Securities and Exchange Act, alleging that it supports unregistered securities trading, and the Internal Revenue Service and federal prosecutors are investigating see if Binance broke the law against money laundering. The US Commodity Futures Trading Commission (CFTC) sued Binance in March for violating its derivatives trading rules.
In a statement, Binance denied the allegations, saying it is in full compliance with US and international financial sanctions. “In 2021, the company has launched initiatives to completely overhaul our corporate governance, including bringing in world-class executives to fundamentally change how Binance operates globally,” the statement said .
“All Binance customers must go through a management process that includes country of residence and personal identity verification,” he said.
Bloomberg reported that the Justice Department’s investigation comes amid a series of bankruptcies and scandals involving celebrities in the cryptocurrency industry. “Any action taken by Binance will reverberate throughout the cryptocurrency industry,” he said.
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