Crypto exchange Binance is anticipated to face penalties in connection to the money laundering investigation that started in 2018 in the US.
Binance Money Laundering Investigation Sanctions News: Top exchange Binance may encounter difficulties as the cryptocurrency market continues to struggle following the FTX-related contagion impact.
The compliance program for the crypto exchange reportedly contained abnormalities, according to the most recent reports. The information was discovered as a result of the criminal investigation by the US Justice Department, which started in 2018.On whether to wrap up the investigation, the US Department of Justice’s prosecutors is apparently split.
How Likely Is Binance To Face Penalties?
According to recent reports, $1 billion worth of cryptocurrency transactions for Iranian-based businesses took place on Binance. This could have put the cryptocurrency exchange at risk of violating U.S. sanctions.
According to a recent Reuters report, a disagreement among the prosecutors is holding up the case’s resolution. According to the source, the inquiry is primarily focused on U.S. anti-money laundering laws and sanctions.
It’s interesting to note that the investigation team already has a sufficient amount of proof to support criminal charges against a number of officials, including CEO CZ. On the other hand, the report stated that some prosecutors support a review of the accumulated evidence.
Law enforcement agents have questioned a number of former Binance advisors as part of the investigation. Additionally, defence lawyers for Binance have spoken with Department of Justice representatives.
The Significant Impact Of Binance On The Crypto Market
Three allegations against the cryptocurrency exchange are being investigated: unlicensed money transfer, a conspiracy to launder money, and violation of criminal sanctions.
The announcement of the criminal investigation comes while the crypto industry is going through a difficult period against the backdrop of the FTX crash.
In reality, Binance is one of the few large crypto firms that has not suffered significant losses as a result of the FTX meltdown.