Binance Planned to Disarm US Authorities Through Binance.US Arm, Report Claims

2023-3-6 13:00

Binance embarked on a plan to disarm U.S. authorities out of fear of prosecution, claims a new report by The Wall Street Journal. 

The paper alleges that Binance was prepared to defuse the risk of potential lawsuits through ‘two entities.’ The investigation is based on documents from 2018 to 2020 and interviews with former workers.

Creating 2 Separate Entities

WSJ noted that Binance planned to create a basic American platform called Binance.US that would use the former’s name and technology under license. In addition, it would present as a completely separate entity from Binance.com. The report claimed that the separation would protect the parent from the United States’ regulatory inspection. 

The investigation by the paper claims, “But Binance and Binance.US have been much more intertwined than the companies have disclosed, mixing staff and finances and sharing an affiliated entity…”

Binance tried to avoid U.S. regulatory scrutiny with a bare-bones American platform that it said was wholly separate from its more complex global operation. But private messages show the two businesses have been much more intertwined. https://t.co/a1LZGxSQzs

— The Wall Street Journal (@WSJ) March 5, 2023

Therefore, the global exchange might fall under their jurisdiction if the U.S. authorities could prove this connection. Although a fifth of Binance.com’s customers were in the United States, the report alleges that the company primarily operated from hubs in China and Japan. It contended that this gave access to software codes or customer data from the U.S. to engineers outside.

Amid the ongoing probe, three U.S. Senators recently requested financial and compliance papers from the exchange’s top executives.

BeInCrypto previously reported that Changpeng Zhao and Brian Shroder were asked for the papers in order to defend the validity of Binance’s business strategy and practices.

Despite the division of company units, they contend that Binance.com owns Binance.US funds. They also allege that U.S. customers were held in the exchange’s holding company in the Cayman Islands. While the domestic entity is operating from San Francisco. According to reports, the Justice Department and the SEC have been probing this connection since 2020.

Media Trail Continues for Binance

This is not the first time mainstream media has targeted the world’s largest exchange. According to a ‘special report‘ by Reuters from 2022, Binance allegedly complied with the Russian government’s request to give it user information on Bitcoin donations linked to opposition leader Alexei Navalny.

Later in the same year, CEO Changpeng Zhao reacted to more explosive news. Reuters’ allegations ranged from how Binance became a “hub for hackers, fraudsters, and drug traffickers” to its “weak money-laundering checks.” An October report accused Changpeng Zhao of “plotting to dodge regulators in U.S. and U.K.”  

The same report also underlined that Binance.US was established as a de facto subsidiary in 2019. Whose purpose was to shield the global exchange from the attention of American authorities.

Following the allegations, the exchange’s top executive disputed them and retaliated against the media outlet in each past instance.

The post Binance Planned to Disarm US Authorities Through Binance.US Arm, Report Claims appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Binance Coin (BNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $562.5
Капитализация $0 Rank 99999
Цена в час новости $ 285.08 (-100%)

binance authorities report claims disarm planned through

binance authorities → Результатов: 67


France facing backlash for Binance regulatory approval, French MEP called the move “surprising and worrying”

Binance, last month on May 6, received the green light from French authorities to set up a significant presence in one of Europe’s top financial centers. The post France facing backlash for Binance regulatory approval, French MEP called the move “surprising and worrying” appeared first on CryptoSlate.

2022-6-28 08:05


Фото:

UK’s Financial Authorities Declares Binance Not Capable Of Being Supervised Properly – Poses A ‘Significant Risk’ To British Investors

The Financial Conduct Authority (FCA) has made an update to their consumer warning made against Binance on June 26. The update stated that Binance Markets Limited, a U. K. -based subsidiary of the global cryptocurrency exchange had “complied with all aspects of the requirements” previously placed on it.

2021-8-28 20:21


As Binance faces more regulatory backlash, Indian authorities may be the latest to initiate probe

Prominent cryptocurrency exchange, Binance has announced the discontinuation its futures and derivatives services across Europe. Binance announced this on Twitter through a series of tweets, which notThe post As Binance faces more regulatory backlash, Indian authorities may be the latest to initiate probe appeared first on AMBCrypto.

2021-7-30 15:30


Binance faces more regulatory backlash; Indian authorities reportedly latest to initiate probe

Prominent cryptocurrency exchange, Binance has announced the discontinuation its futures and derivatives services across Europe. Binance announced this on Twitter through a series of tweets, which notThe post Binance faces more regulatory backlash; Indian authorities reportedly latest to initiate probe appeared first on AMBCrypto.

2021-7-30 15:30


Фото:

Binance Vows To Seek Licensing Approval And Increase KYC Compliance With Regulators Globally

Binance has launched a global campaign to obtain licensing from local regulatory authorities including in Asia-Pacific, EMEA, and Latin America, according to the exchange’s CEO ChangPeng Zhao (CZ). CZ said on Twitter that the exchange held an hour-long press conference to share the active steps it’s taking to build on compliant efforts with local financial regulators […]

2021-7-29 17:46


Фото:

Roskomnadzor, Russia’s telecom watchdog blacklists Binance’s website

Russian authorities have started tightening their clampdowns on Binance, the largest crypto exchange in the world. The exchange announced this news via its Russian Telegram channel on September 24, noting that Roskomnadzor, Russia’s telecom regulator had added its website to the list of platforms spreading prohibited information.

2020-9-26 14:18


Фото:

Binance Domain Blacklisted by Russian Authorities

On September 24, 2020, Binance – one of the largest crypto exchanges in the world in terms of trade volume – announced on its website that its domain has been blacklisted in Russia. It seems that the exchange platform has been taken by surprise when the Roskomnadzor – the Federal Service for Supervision of Information […] The post Binance Domain Blacklisted by Russian Authorities appeared first on BeInCrypto.

2020-9-25 13:36


Фото:

Binance CEO dismisses Shanghai police raid news as “pure FUD,” says rival crypto exchanges are paying for disinformation

The chief executive of Binance, one of the world’s top crypto exchanges, has vociferously denied reports that the firm’s Shanghai office has been raided by Chinese authorities. Incredibly, CEO Changpeng Zhao claims Malta-based Binance, in fact, has no Shanghai office and that the allegations are part of a smear campaign paid for by rival crypto […] The post Binance CEO dismisses Shanghai police raid news as “pure FUD,” says rival crypto exchanges are paying for disinformation appeared first on CryptoSlate.

2019-11-22 08:21