Binance Under Investigation For Allegedly Helping Russian Citizens Transfer Money


The investigation into the world’s biggest crypto exchange is linked to Russia’s invasion of Ukraine. The probe is being led by the Justice Department’s national security division, which is concurrent with another investigation being conducted by the agency’s criminal division. The revelation adds an additional degree of scrutiny to the operator of the world’s largest cryptocurrency exchange, which is reeling from a string of startling bankruptcies and high-profile scandals.

Binance has been in contact with the Justice Department to settle past concerns that the exchange was used to circumvent sanctions against Iran prior to the implementation of strict compliance procedures.

Authorities throughout the globe have long urged for stronger regulations on cryptocurrency exchanges, including Binance, the world’s biggest, to avoid unlawful activity ranging from money laundering to terrorist funding.

Binance confirmed to Bloomberg that it abides by all US and international banking restrictions. The company said in a statement to Bloomberg:

“In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a world-class bench of seasoned executives to fundamentally change how Binance operates globally.”

The company’s know your customer (KYC) processes are on par with those in the conventional banking system, and every client is subject to the controls, which include checks on country of residence and personal identity.

The announcement comes as law enforcement and US officials expand their investigation of the cryptocurrency business. In a March enforcement action, the Commodities Futures Trading Commission accused Binance of willfully violating federal law and running an unlawful digital asset derivatives market.

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