Binance Under Investigation by DOJ for Sanctions Violations

TLDR:

• The United States DOJ’s national security and crime divisions are investigating Binance, one of the world's largest cryptocurrency exchanges, for possible violations of Russian sanctions.
• Binance faces several investigations in the United States, including an Anti-Money Laundering (AML) violations inquiry by the DOJ.
• Binance claimed to be fully compliant with U.S. and international sanctions and that its KYC protocols were in line with traditional banking standards.

Binance Faces DOJ Probe

Binance, one of the world's largest cryptocurrency exchanges, is reportedly being investigated by the United States Department of Justice (DOJ) for possible violations of Russian sanctions.

According to emerging reports from Bloomberg on May 5, the DOJ’s national security and crime divisions are both conducting investigations into the matter. However, neither Binance nor its executives have been accused of any wrongdoing at this time.

The national security probe is said to be running parallel to a criminal division investigation, with both inquiries focused on Binance’s provision of services to Russian clients. This development comes amidst several investigations underway in the United States related to Anti-Money Laundering (AML) violations involving Binance.

While the exchange restricted its services to Russia after sanctions were imposed on the country in April 2022, it continued to operate in the region. Binance executives claimed that they only serviced non-sanctioned individuals and blocked only areas of Ukraine that were no longer under government control. The company also faces a lawsuit brought by the U.S. Commodity and Futures Trading Commission (CFTC) alleging Know Your Customer (KYC) and AML violations in March.

Binance responded to the allegations by stating that it was fully compliant with both U.S. and international sanctions, and that its KYC protocols were in line with traditional banking. The company claimed that every customer was subject to identity and residency checks and that it maintained a zero-tolerance policy for double registrations, anonymous identities, and obscure sources of money.

Moreover, the exchange is said to be in discussions with the DOJ about previous sanctions violations against Iran. The report also highlights that Binance is not the only cryptocurrency exchange to face sanctions violation scrutiny, as Poloniex recently paid a $7.6 million settlement to the U.S. Treasury Department’s Office of Foreign Asset Control for violating sanctions against Crimea, Cuba, Iran, Sudan, and Syria.

What is Binance:

Binance is the world's leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more.

Where to find Binance:

Website | Twitter | Discord | Telegram