US STILL HAS NOT LET BINANCE OFF THE HOOK AND CONTINUES TO INVESTIGATE IRAN RELATED FUNDS
According to Bloomberg, US federal prosecutors in Manhattan are investigating whether Binance knowingly ignored certain transactions linked to Iran, a country under US sanctions.
The important point is that there is currently no conclusion that Binance violated the law in this new investigation.
But this is still notable because Binance was involved in a major case in 2023.
At that time, Binance pleaded guilty to violations related to anti money laundering requirements, money transmission laws, and US sanctions. The company agreed to pay around 4.3 billion dollars in penalties and forfeiture. CZ also pleaded guilty over his failure to maintain an effective AML program and stepped down as CEO.
What makes this even more interesting is that the US Department of Justice said Binance had allowed nearly 900 million dollars in transactions between US users and users in Iran during the earlier period.
So if this new investigation finds additional issues that happened after Binance committed to strengthening its compliance system, the legal pressure on the exchange could become very significant.
And there is another interesting point
Binance is often among the largest exchanges by trading volume and long short liquidation volume.
More liquidity means more transactions and more data to monitor.
If Binance ever faces a major disruption
The crypto market could be looking at a real black swan event
According to Bloomberg, US federal prosecutors in Manhattan are investigating whether Binance knowingly ignored certain transactions linked to Iran, a country under US sanctions.
The important point is that there is currently no conclusion that Binance violated the law in this new investigation.
But this is still notable because Binance was involved in a major case in 2023.
At that time, Binance pleaded guilty to violations related to anti money laundering requirements, money transmission laws, and US sanctions. The company agreed to pay around 4.3 billion dollars in penalties and forfeiture. CZ also pleaded guilty over his failure to maintain an effective AML program and stepped down as CEO.
What makes this even more interesting is that the US Department of Justice said Binance had allowed nearly 900 million dollars in transactions between US users and users in Iran during the earlier period.
So if this new investigation finds additional issues that happened after Binance committed to strengthening its compliance system, the legal pressure on the exchange could become very significant.
And there is another interesting point
Binance is often among the largest exchanges by trading volume and long short liquidation volume.
More liquidity means more transactions and more data to monitor.
If Binance ever faces a major disruption
The crypto market could be looking at a real black swan event