What US Accusations Is The Cryptocurrency Exchange Binance Subject To?

As part of a $4.3 billion settlement that ended a years-long investigation into the largest cryptocurrency exchange in the world, Changpeng Zhao, the CEO of Binance, resigned and entered a guilty plea to violating federal anti-money laundering rules, according to authorities on Tuesday.

According to the U.S. Department of Justice, the agreement will end criminal accusations against Binance for operating an unauthorized money transmitter company, conspiring, and breaking sanctions laws.

A portion of the charges—both criminal and civil—have to do with actions that Reuters originally covered in a string of pieces in 2022. Here are the key allegations against Binance, its founder Zhao and other executives.

Unlicensed Money Service Business

The U.S. said that Binance, Zhao and other executives “knowingly and willfully conspired” to operate as an unlicensed money services business (MSB) from August 2017 until October 2022. The main accusations made against Binance, its founder Zhao, and other officials are listed below.

Unlicensed Financial Services Company

According to the U.S., from August 2017 to October 2022, Binance, Zhao, and other officials “knowingly and willfully conspired” to operate as an unregistered money services business (MSB).

Violations Of Sanctions

The United States stated that it knew that Iran constituted “the majority of such customers” and that Binance had a “significant customer base” from certain sanctioned states.

The United States said that Binance was aware that it would permit transactions “in violation with U.S. law” between users in the United States and individuals under U.S. sanctions.

“Terrorist” Loans

Authorities claim that Binance neglected to notify suspected transactions connected to the extremist Palestinian organization Hamas.

The United States alleged that cryptocurrency wallets at Binance interacted with bitcoin wallets linked to organizations that the US and other nations have banned as terrorist organizations, such as the Islamic State, the Hamas armed wing, al Qaeda, and the Palestine Islamic Jihad (PIJ).