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Binance an issue too?

Discussion in 'Crypto Assets' started by tango29, Dec 13, 2022.

ph1l
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https://decrypt.co/116961/us-justice-dept-mulling-criminal-charges-against-binance-founder-cz-report

US Justice Dept Mulling Criminal Charges Against Binance Founder CZ: Report
Discussions between Binance attorneys and Department of Justice officials have reportedly included potential plea deals.
By Stephen Graves
Dec 12, 2022
2 min read

Binance. Image: Shutterstock

U.S. Department of Justice prosecutors are considering filing criminal charges against crypto exchange Binance, and individual executives including CEO and founder Changpeng "CZ" Zhao, according to Reuters.

Prosecutors are divided on whether to move aggressively against the exchange or take time to review more evidence, Reuters reported, citing four sources familiar with the matter.

The potential charges relate to an investigation launched in 2018 and focused on Binance's compliance with anti-money laundering laws and sanctions. Prosecutors at three Justice Department offices are reportedly involved; the Money Laundering and Asset Recovery Section (MLARS), the U.S. Attorney’s Office for the Western District of Washington in Seattle and the National Cryptocurrency Enforcement Team.

Binance's defense attorneys have held meetings with DOJ officials including potential plea deals, per Reuters, with Binance reportedly arguing that a criminal prosecution would have negative effects on a crypto market already reeling from the aftershocks of Terra and FTX's collapses.

In a statement shared on Twitter, Binance claimed that "Reuters has it wrong again," and that "We don't have any insight into the inner workings of the US Justice Department, nor would it be appropriate for us to comment if we did."

In a statement to Decrypt, a Binance spokesperson said that, "As has been reported widely, regulators are doing a sweeping review of every crypto company against many of the same issues. This nascent industry has grown quickly and Binance has shown its commitment to security and compliance through large investments in our team as well as the tools and technology we use to detect and deter illicit activity."

Binance faces investigations
In 2021, a Bloomberg report revealed that Binance was under investigation by the DOJ and IRS, with officials who typically handle money laundering and tax offences reportedly involved in the investigation; it's unclear whether Reuters' report refers to the same investigation.

Binance Under Investigation by DOJ and IRS: Report
Binance, the world's largest cryptocurrency exchange by trading volume, is under investigation by the Department of Justice and Internal Revenue Service, according to Bloomberg. The exact subj...

NewsBusiness
2 min read
Will GottsegenMay 13, 2021
At the time, Binance issued a statement on Twitter asserting that, "We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion," adding that it has "worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity."
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But don't worry, because CZ says:
https://finance.yahoo.com/news/99-people-lose-crypto-storing-144442564.html

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao
1
Alys Key
Wed, December 14, 2022 at 8:44 AM·3 min read

Binance chief Changpeng "CZ" Zhao has suggested users are more likely to lose crypto by holding it in a cold wallet than by putting it on a centralized exchange.

“For most people, for 99% of people today, asking them to hold crypto on their own, they will end up losing it,” he said in a Twitter Space discussion held on Wednesday.

- ADVERTISEMENT -
The exchange founder, who was speaking a few hours after news broke that he had told his staff to brace for a “bumpy” few months, said his company was “neutral” on whether users wanted to hold their own crypto or put it on an exchange, but suggested that practicalities make self-custody unrealistic for many.

US Justice Dept Mulling Criminal Charges Against Binance Founder CZ: Report

“Most people are not able to back up their security keys; they will lose the device,” he said. “They will not have the proper encryption for their backup; they will write it on a piece of paper, someone else will see it, and they will steal those funds. And also today, very fundamentally, if a person passes away, they don’t have a way to give to their next of kin. Whereas we have a standard operating procedure [for that].”

CZ added that people who are technically capable of holding crypto safely should do so but claimed that the practice has its own issues.

“I always try to educate people so they understand there are risks,” he said. “Holding your own crypto in your wallet is not risk-free; I actually think more people lose money holding their own—lose more crypto when they’re holding on their own than on a centralized exchange.”

'Business as usual' at Binance
The collapse of Binance’s rival FTX and subsequent revelations about its financial position prompted a resurgence in the slogan “not your keys, not your coins” in the community.

The phrase refers to the idea that crypto stored using anything other than your very own unique personal keys are not technically yours.

This week, Binance has seen billions withdrawn from its platform as investor confidence has been shaken by the continued fallout of FTX’s collapse. CZ has insisted the activity is “business as usual.”

FTX 'One of the Biggest Financial Frauds in American History': Prosecutor Damian Williams

He added that the arrest of FTX founder Sam Bankman-Fried was having an effect on market sentiment.

“With Sam Bankman Fried’s arrest, I think people generalize. So if you get hurt by one bank, you're gonna think all the other banks are bad. If one politician is corrupt, you think all politicians are corrupt,” he said. “But the fact is that because one bank is bad doesn't mean all the other banks are bad. And just because one politician is bad doesn't mean all the other politicians are bad.”

When asked if he would appear in D.C. if invited to testify before congress, CZ said he tries not to go to the U.S. in order to emphasize the separation between Binance.com and Binance’s U.S. business.

“I'm also quite busy visiting many other countries [...] I'm not against traveling to the U.S.; I think the U.S. is great [...] I like the place, but you know, I'm busy with my other priorities.”
More...

#11 Dec 14, 2022

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Pekelo
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99% of crypto users will lose crypto, period.

#12 Dec 14, 2022

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TheDawn likes this.
The_Krakenite
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O'Leary is not a fan of Binance... Blames them for the fall of FTX. Ok... so he admits that maybe FTX wasn't so innocent either.

#13 Dec 14, 2022

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tango29
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CNBC wasn't in fanboy mode interviewing that CZ Binance guy this morning. So much better an interview when you aren't in fanboy mode and actully push back on non answers.
CZ did not come off as a guy who was telling the whole truth, more as someone trying to get air time in preparation for ass covering to come. I did enjoy his points ripping O'Leary.

#14 Dec 15, 2022

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destriero
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The_Krakenite said:
O'Leary is not a fan of Binance... Blames them for the fall of FTX. Ok... so he admits that maybe FTX wasn't so innocent either.

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He’s pissed that his gravy train stopped. Kev took FTT lol. He’s really on the wrong side of history here.

#15 Dec 15, 2022

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Cuddles likes this.
Cuddles
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destriero said:
He’s pissed that his gravy train stopped. Kev took FTT lol. He’s really on the wrong side of history here.
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right? CZ sneezed at FTT and house of cards fell apart.

#16 Dec 15, 2022

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destriero likes this.
ZBZB
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CZ made a mistake tweeting about the problems at FTX. The receiver may come after the $2.1 bn that binance got for their FTX stake.

#17 Dec 15, 2022

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TheDawn likes this.
TheDawn
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Cuddles said:
right? CZ sneezed at FTT and house of cards fell apart.
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Yeah the house of cards that CZ himself helped build.

#18 Dec 15, 2022

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TheDawn
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ZBZB said:
CZ made a mistake tweeting about the problems at FTX. The receiver may come after the $2.1 bn that binance got for their FTX stake.
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About time and that $2.1 billion should go to FTX's investors.

#19 Dec 15, 2022

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RedDuke
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French accounting firm Mazars will reportedly stop working for Binance and other crypto companies

https://www.marketwatch.com/story/f...er-crypto-companies-11671201965?mod=home-page

I love CZ and Tether excuse, auditors and accountants just do not understand crypto.

perhaps that is because BNB and USDT are printed out of thin air and might not be a safe collateral

#20 Dec 16, 2022

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