Skip to content

US DoJ To Charge Binance in Anti-Money Laundering Act?

The US Department of Justice was divided about whether or not to charge Binance in connection with the 2018 AML investigation:

Photo by Joshua Hoehne / Unsplash

The US Department of Justice was divided about whether or not to charge Binance in connection with the 2018 AML investigation:

Over the previous several years, Binance has been issued compliance warnings by several countries, but it has been able to rectify the situation in most countries except the United States.

The investigation involving cryptocurrency exchange Binance initiated in 2018 is getting close to being finished by the Department of Justice (DOJ) of the United States of America.

What is the Case?

According to a report (1) that Reuters published, there appears to be disagreement among US prosecutors as to whether the information obtained is sufficient to pursue criminal proceedings against the crypto exchange and its boss.

The compliance of Binance with the anti-money laundering (AML) regulations and sanctions of the United States is the focus of the inquiry that took place in 2018. Prosecutors in the United States were investigating allegations of illegal money transmission without a license, conspiracy to launder money, and violations of criminal sanctions.

According to the report, the defense counsel for Binance has been meeting with officials from the Department of Justice over the past few months, and they have been arguing against any potential criminal charges.

According to reports, Binance has asserted that any court prosecutions against them might wreak havoc on the cryptocurrency industry during a lengthy market downturn. According to the article, one of the topics discussed was the possibility of a plea agreement.

As per the spokesperson for Binance, the story from Reuters shows that the regulators are doing a sweeping investigation of every crypto business against many of the same problems and that Binance has demonstrated its dedication to security and compliance by making significant investments in their personnel as well as the technology and tools to detect and discourage criminal behavior.

Due to the stringent legislative criteria that must be met to provide services in the United States, Binance launched a specialized cryptocurrency exchange for consumers in the United States in July 2017. However, the inquiry that began in 2018 slowed down the trade progress in the United States less than a year after it began.

Reuters released yet another article in June of this year that accused the cryptocurrency exchange of being a hub for money launderers. The report was published in June. Binance has dismissed all of these assertions, implying that the research selectively chose which data to include.

It’s Nothing New

The compliance issues Binance has been having are nothing new, as the exchange has been issued countless warnings throughout its existence from various authorities. Despite the fact that the exchange has made many hires to bolster its regulatory and compliance team, it has successfully solved the compliance difficulties in many of those nations, except the United States.