Binance Under Investigation For Sanctions Violation, Helping Russian To Exchange Money

Key Points:

• The U.S. Justice Department is investigating whether Binance violated Russian sanctions by involving blacklisted banks.
• Binance faces SEC and CFTC inquiries over compliance and anti-money laundering, adding to its challenges.
• The exchange quietly lifts curbs on Russian users, permitting broader currency deposits and higher balances.

The U.S. Department of Justice (DOJ) is reportedly investigating cryptocurrency giant Binance for potential violations of U.S. sanctions against Russia, the WSJ reported.

According to sources, Binance has been enabling Russian customers to conduct transactions involving at least five sanctioned Russian banks, potentially breaching global sanctions regulations.

Although the exchange initially scaled back its operations in Russia following the country’s incursion into Ukraine, it appears that the exchange continued to facilitate substantial ruble trading volumes.

Reports suggest that clients have been able to convert funds from sanctioned banks into Binance balances through intermediaries. Moreover, its platform has been utilized for peer-to-peer trades involving blacklisted banks, as evidenced by various sources, including user screenshots and official chat groups.

The investigation by the DOJ is only one of the legal challenges facing the exchange. It has been previously scrutinized for anti-money laundering concerns and compliance failures by both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Binance maintains that it has cooperated transparently with regulatory authorities and law enforcement agencies and intends to mount a strong defense against the SEC’s charges. Founder Changpeng Zhao has also disputed certain allegations outlined in the CFTC complaint.

In a recent development, the exchange quietly lifted the restrictions it had imposed on Russian citizens and residents over a year ago.

Deposits in Russian rubles, euros, British pounds, and other currencies from bank cards issued in Russia are now permitted. Additionally, reports indicate that Binance removed account balance limits for Russian users with over 10,000 euros in their accounts.

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