Binance Probed for Sanctions Breach

Binance allegedly facilitated transactions for Russian customers involving at least five Russian institutions subject to international sanctions, thereby potentially violating global sanctions regulations.

Despite initially reducing its operations in Russia due to the country’s involvement in Ukraine, Binance appears to have continued to facilitate substantial trading in Russian rubles.

Reportedly, clients could convert funds from these sanctioned institutions into their Binance accounts via intermediaries. In addition, Binance’s platform has allegedly been used for peer-to-peer transactions involving these blacklisted institutions, as corroborated by multiple sources, such as user-provided screenshots and official chat groups.

The Department of Justice (DOJ) investigation is just one of the legal obstacles Binance faces. Before this, the exchange was investigated by both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for issues related to anti-money laundering and compliance failures.

Binance asserts that it has transparently cooperated with regulatory and law enforcement agencies and intends to mount a vigorous defense against the SEC’s allegations. Changpeng Zhao, the founder of Binance, has also refuted some of the claims made in the CFTC complaint.

In a recent development, Binance discreetly lifted restrictions imposed on Russian citizens and residents more than a year ago. This includes allowing bank cards issued in Russia to make deposits in rubles, euros, pounds, and other currencies. In addition, there are allegations that Binance has removed account balance limits for Russian users with balances exceeding 10,000 euros.