While Binance has been under investigation by the US justice system since 2018 for non-compliance with money laundering laws, Reuters news agency is adding fuel to the fire with a comprehensive, highly incriminating dossier against Changpeng Zhao’s exchange.
Binance accused of money laundering
As 2022 draws to a close, not a week goes by without some bad news tainting the cryptocurrency news. Between the debacle of FTX and its CEO, Sam Bankman-Fried, the rumors weighing on centralized exchanges and the threat of regulation, the feverishness is at its peak on the market.
It is in this complicated context that the Reuters news agency has decided to reveal new information about the criminal investigation into Binance and its CEO, Changpeng Zhao. The platform’s token, the BNB, was quick to devalue:
BNB’s share price falls in 1 day
As a reminder, the investigation began in 2018 and aims to rule on Binance’s compliance with US anti-money laundering laws. Specifically, the charges against the exchange are unlicensed money transfer, conspiracy to facilitate money laundering and violations of criminal sanctions.
According to Reuters, the prosecutors in charge of the investigation are divided. Some believe they have enough evidence to bring significant penalties against Binance, while others prefer to take the time to examine further evidence.
Reuters investigate Binance
In this dossier, Reuters boasts that it has “compiled the most comprehensive account to date of how the investigation developed and how Binance sought to keep it at bay. The news agency has collected a dozen interviews with people involved on both sides of the case.
Specifically, Reuters reports that the investigation has accompanied Binance throughout its growth, almost from its inception. They noted that the exchange recruited officials from the US Criminal Investigation Division, an organisation that was investigating them.
The London agency’s investigation goes further, as it directly accuses Binance of having continued to practice very lax anti-money laundering controls in 2022. The exchange allegedly processed more than $10 billion in payments “for criminals and companies seeking to evade US sanctions, and conspired to evade regulators in the US and elsewhere.”
Binance was understandably quick to respond, stating its support for its compliance department and denying all accusations against it:
Reuters has it wrong again.
Now they’re attacking our incredible law enforcement team. A team that we’re incredibly proud of – they’ve made crypto more secure for all of us.
Here’s the full statement we sent the reporter and a blog about our remarkable law enforcement team.
– Binance (@binance) December 12, 2022
The stakes are still high for the cryptocurrency market. If the outcome of the investigation is against Binance and CZ, it could be devastating as the exchange’s hold is strong and has been strengthened by the recent collapse of its rival FTX.
