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Was Binance a conduit for money laundering?

For five years, the world’s largest cryptocurrency exchange Binance served as a conduit for the laundering of at least $2.35 billion in illicit funds, a Reuters investigation has found. In September 2020, a North Korean hacking group known as Lazarus broke into a small Slovakian crypto exchange and stole virtual currency worth some $5.4 million.

Does Binance have a compliance program?

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. sanctions. Until mid-2021, Binance customers could trade crypto by registering with just an email address.

Did Binance violate US regulations?

The US Securities and Exchange Commission has filed a total of 13 charges against Binance in US federal court. The core of the SEC’s complaint against Binance and CEO Changpeng Zhao is that the company knowingly skirted US regulations and deceived US investors and regulators about how it was operating its exchange.

How would Binance handle US investors?

The company, Binance.US, publicly said that it would handle US investors, who would go through a rigorous screening and validation process. Instead, the company worked to quickly register users instead of conduct money laundering checks, former employees and advisers told Reuters.

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