A major cryptocurrency exchange, Binance, is facing serious allegations of lax controls facilitating illicit transactions, as reported by Bloomberg.
The U.S. prosecution has confirmed Binance’s association with ISIS, Al-Qaeda, and Hamas, utilizing the platform for Bitcoin trades and exposing regulatory loopholes in dealings with terrorists, hackers, and sanction violators, resulting in the movement of billions in digital assets.
The court found Binance employees implicated in criminal activities, knowingly permitting illegal transactions, and maintaining ineffective anti-money laundering protocols.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Justice reported that Binance neglected its legal obligations, allowing money to flow to terrorists, cybercriminals, and child abusers.
Treasury Secretary Janet Yellen stated, “Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
The company admitted that Iranian nationals executed sanctioned transactions, and users from restricted regions conducted million-dollar transactions violating U.S. sanctions.
Binance addresses also handled tens of millions of dollars in transactions involving 24 strains of ransomware, with names like SamSam, Satan and WannaCry. Binance failed to provide critical information about those attacks while still working with law enforcements when notified.
Binance CEO Changpeng Zhao has pleaded guilty to anti-money laundering lapses, facing a $4.3 billion settlement, $50 million fine, and forced resignation. The 25% liquidity impact marks a substantial setback for the once-prominent cryptocurrency exchange.
Also Read: Binance Sees $1B Net Outflow In 24 Hours After CZ Plead Guilty
