Binance Accused Of Illegal Activity And Lack Of Transparency! What Next? 

Author: Sohrab Khawas

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    Binance, the biggest cryptocurrency exchange, is under fire for alleged illegal activity and non-compliance with regulations. A group of US Senators sent a letter to Binance’s CEO Changpeng Zhao and Binance.US’s CEO Brian Shroder, demanding transparency and accountability in the crypto industry.

    Opacity in Corporate Structure

    The allegations against Binance are serious, including criminal sanctions evasion, money laundering conspiracy, and unlicensed money transmission. They’ve even been accused of having an intentionally “opaque corporate structure,” making it hard to tell who actually owns the company.

    This lack of transparency has raised concerns about the company’s financial health, and the Senators even claim that Binance controls the finances of Binance.US, which is supposed to be an independent US partner.

    Facilitation of Illegal Financial Activity

    Investigations have revealed that Binance has facilitated over $10 billion in payments to criminals and sanctions evaders. It’s like a hub for illegal financial activity! They’ve even put systems in place to avoid regulatory oversight, which is not cool.

    Non-Compliance with Regulations

    In an attempt to evade US oversight, Binance set up a US-based exchange with limited product offerings called Binance.US. However, recent reports suggest that Binance.US is controlled by Binance as a de-facto subsidiary. This is definitely not complying with the Bank Secrecy Act.

    The Need for Transparency and Accountability

    This news is causing concerns for customers who entrust their assets to Binance. With allegations of illegal activity and non-compliance with regulations, customers need to know what’s going on with their assets. The collapse of FTX, another cryptocurrency exchange facing allegations of illegal activity, highlights the need for transparency and accountability in the crypto industry.

    With over 120 million users globally, Binance is in a position to facilitate illicit financial transactions on a massive scale. This news is certainly worrying and shows the importance of transparency and accountability in the crypto industry.

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