Reuters found that the gaps in Binance's compliance programme enabled criminals to launder at least $2.35 billion in illicit funds through the exchange, which also served traders in Iran despite U.S.
Binance ceo license#
Born in China and educated in Canada, where he holds citizenship, Zhao told Bloomberg in March that he will be based for the "foreseeable future" in Dubai, which that month granted Binance a license to conduct some operations.Ī series of Reuters articles this year revealed how Binance drove its explosive growth while keeping weak customer checks and withholding information from regulators. "Binance is requested to produce all documents and materials that are responsive to this letter in its possession, custody, or control," it said.īinance was launched by Zhao, known as CZ, in Shanghai in 2017 and as of July controlled over half of the world's crypto trading markets, processing transactions worth more than $2 trillion that month. The letter made 29 separate requests for documents produced since 2017, covering the company's management, structure, finances, anti-money laundering and sanctions compliance, and business in the United States. A Binance spokeswoman told Bloomberg at the time, "We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion."
The probe's existence was reported last year by Bloomberg but until now little has been known about it. The request reveals the broad scope of the U.S. A Department spokesman declined to comment. He didn't say how Binance responded to the Justice Department request.
This is a standard process for any regulated organization and we work with agencies regularly to address any questions they may have." Binance has "an industry leading global security and compliance team" with over 500 employees, including former regulators and law enforcement agents, Hillmann added. In response to Reuters' questions about the letter and investigation, Binance Chief Communications Officer Patrick Hillmann said, "Regulators across the globe are reaching out to every major crypto exchange to better understand our industry.
Reuters could not establish how Binance and Zhao, one of the most prominent figures in the crypto sector, responded to the request from the department's criminal division. financial system from illicit finance, provides for jail terms of up to 10 years. This requires crypto exchanges to register with the Treasury Department and comply with anti-money laundering requirements if they conduct "substantial" business in the United States. authorities, the people said, are investigating whether Binance violated the Bank Secrecy Act.
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