The U.S. Will Supposedly Charge Binance With Money Laundering
The crypto community is still suffering from the financial collapse of the FTX company, led by Sam Bankman-Fried. No one knows how long this storm will endure since major exchanges have taken preventative steps to avert an immediate meltdown.
As a result of FTX’s lack of legitimacy, several centralized exchanges have found themselves in uncertain waters. For instance, Gemini has reduced its workforce to make up for shortfalls caused by the market’s elevated fear index.
Due to the massive abuse of cash in the past, exchanges are under more monitoring than ever before.
Binance, the world’s biggest cryptocurrency exchange, is now in the eye of the storm. The Department of Justice of the United States is split on its decision to prosecute the exchange.
According to Reuters, in 2020, United States federal prosecutors submitted a formal request for Binance to provide its internal documents on anti-money laundering inspections.
The inquiry into Binance’s compliance with U.S. anti-money laundering legislation started in 2018. Some federal prosecutors feel immediate and decisive action is required against the exchange based on the facts at hand.
While some prosecutors want to press criminal charges against people, including Binance’s CEO Changpeng Zhao, others seek to consolidate the facts and evidence.
This inquiry comprises attorneys from three offices of the Justice Department. The National Cryptocurrency Enforcement Team, the Money Laundering and Asset Recovery Section.
The allegations include money transfer without a license, conspiracy to launder money, and breach of criminal penalties. There are currently no judgments about charges against Binance since the matter seems quite hazy.
The Binance team went to Twitter to reject the charges, noting that “Reuters is once again in error.” It then posted the message provided to the reporter on Twitter, implying that they maintain a high degree of compliance with the current legislation.
In addition, the crypto giant revealed that they employ some of the best cyber detectives and a 300-person team for financial crimes.
The investigations started in 2018, and according to Reuters, Binance went to considerable measures to protect corporate data. It is unknown if the cryptocurrency exchange would incur fees.