top of page

Binance Facing Civil Charges,Under Investigation by Justice Department for Mixing Customer Funds




The world's largest cryptocurrency exchange, Binance, is facing civil charges from the Commodity Futures Trading Commission (CFTC) and is also under investigation by the Justice Department for mixing customer funds with revenue.

The CFTC filed a civil complaint against Binance on Monday, alleging that the exchange violated U.S. commodities laws by "willfully evading" registration requirements and failing to implement basic compliance procedures. The complaint seeks unspecified monetary penalties and restitution.

The Justice Department is also investigating Binance for possible money laundering and sanctions violations. The investigation is reportedly focused on whether Binance processed transactions for sanctioned individuals and entities.

Binance has denied any wrongdoing. In a statement, the exchange said that it "has always complied with applicable laws and regulations."

The charges against Binance are a major setback for the exchange, which has been one of the most popular cryptocurrency exchanges in the world. The charges could also have a chilling effect on the cryptocurrency industry as a whole.

The CFTC's complaint alleges that Binance commingled customer funds with its own revenue in 2020 and 2021. This is a violation of U.S. financial regulations that require cryptocurrency exchanges to keep customer funds separate from the company's accounts.

The complaint also alleges that Binance failed to implement basic compliance procedures, such as conducting customer due diligence and monitoring for suspicious activity.

The Justice Department's investigation into Binance is reportedly focused on whether the exchange processed transactions for sanctioned individuals and entities. Sanctions are penalties imposed by the U.S. government on individuals and entities that are considered to be a threat to national security.

Binance has denied any wrongdoing in connection with the Justice Department's investigation.

The charges against Binance are a major setback for the exchange and the cryptocurrency industry as a whole. The outcome of the cases will have a significant impact on the future of the cryptocurrency industry.

Comments


Never Miss a New Post.

Thanks for subscribing!

bottom of page