US authorities will investigate Binance for possible Russian sanctions violations
The world’s largest cryptocurrency exchange Binance has become the centre of attention of the US authorities due to a possible violation of Russia-related sanctions. According to the media, the US Justice Department will probe Binance’s activities because of ignoring international sanctions against Russia.
The investigation is handled by the Justice Department’s national security division. The ministry will check whether Binance employees violated the sanctions against the Russian Federation imposed after Russia’s invasion of Ukraine.
In addition, the Justice Department’s criminal division is also conducting an investigation. Past accusations against Binance related to the violation of sanctions against Iran are also being discussed.
The representatives of the exchange noted that Binance complies with all American and European sanctions imposed against the Russian Federation.
After Russia’s invasion of Ukraine, the US and the EU imposed sanctions on Russian banks and other financial institutions. At the same time, the Deputy Prime Minister of Ukraine appealed to the management of popular cryptocurrency exchanges with a request to close the accounts of Russian and Belarusian users, but the largest exchange did not accept this proposal. Binance’s management stated that such a step contradicts the very essence of cryptocurrencies.
This investigation of Binance’s activities by the US authorities will not be the first one. In 2021, the US Justice Department and the Internal Revenue Service checked complaints that money laundering was taking place on the platform. This year, the US Commodity Futures Trading Commission has levelled a number of accusations against the company. According to the Commission, the exchange allegedly did not complied with its obligation to conduct the necessary customer verification, traded unregistered derivatives, and tried to evade compliance with the laws of the country.