In the hundreds of crypto exchanges all around the world, whether centralized or decentralized, billions of dollars worth of cryptocurrency circulate daily. With such huge transactions and trading volumes, money laundering has become a major concern for users and investors. One such incident has brought the CZ money laundering lawsuit into the spotlight as three people have accused the exchange of holding their funds. More importantly, the Binance exchange has been regarded as a crypto wash empire during the lawsuit filing.
What Is This New Binance Money Laundering Lawsuit?
Three plaintiffs, Philip Martin, T.F. (Natalie) Tang, and Yatin Khanna, have filed a legal lawsuit in the Western District of Washington, Seattle, against Binance Exchange and Changpeng Zhao, the ex-CEO of the exchange. The plaintiffs have brought these to court over the failure of the exchange to prevent money laundering.
The Binance Lawsuit complaint was filed on August 16 after the unsuccessful recovery of the stolen funds from the exchange. As per the complaint, the exchange has purposely not registered itself as a Money Service Business. This led to the failure of the exchange to adhere to the Anti-money laundering program per the Bank Secrecy Act. The plaintiffs question the exchange’s KYC rules and committing violations to make profits in the US market.
More importantly, these victims have accused Binance of storing the stolen funds on the exchange itself as the thieves attempted to remove the connection between those assets and the ledger to make them untraceable.
A crypto theft or laundering without any traces is only possible if the exchange itself is the bad actor, says the plaintiff. The victims have called Binance the factor behind this money laundering, violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.
However, this has not been the first time for a Binance money laundering lawsuit in court. Just last year, they pleaded guilty to money laundering, and CZ Zhao sentenced to 4 months in prison. Additionally, he resigned from the Binance CEO post and paid $4.3 Billion in fines. However, many similar allegations have been pointed at the exchange and CZ.
Binance Is A Crypto Wash Empire
The Binance Money Laundering lawsuit revealed the exchange’s disregard of the mandatory laws and regulations. As a result, it has become a hub or magnet for criminals. As per the filing, Binance has been regarded as the crypto wash empire as Binance.com offers services to terrorists or other bad actors, which equipped them with the opportunities to be crypto launders and funds stealers as they get to store their steals on the exchange. Based on these allegations, Binance.com has also been regarded as the get-away driver for such people. More importantly, the Binance lawsuit filing noted that the exchange allows the criminals to transfer the funds from the Binance exchange to Binance.com. This transfer makes them clean and no longer associated with the original assets, which were traceable.
Binance is regarded as a Binance Crypto-wash enterprise, leading the seamless transaction of stoles cryptocurrencies all around the world. However, despite that, the developments and updates are constant with the exchange as just recently it listed DOGS as the 57th launch pool project, almost unaffected by the lawsuit.
Final Thought
CZ, the ex-Binance CEO, is about to finish his confinement for the CZ Money Laundering lawsuit in 2023. However, another lawsuit has been filed for the same as the plaintiff failed to recover their stolen funds. As a result, a complaint has been filed against the exchange for lacking anti-money laundering practices. Moreover, these have accused the exchange of being a crypto wash empire, offering services to terrorists and bad actors.
The post CZ Money Laundering Lawsuit Calls Binance A Crypto Wash Empire appeared first on CoinGape.
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