Binance under investigation

[nakamura12]

Nah, we can't force exchange to take the blame since it's not them who made such crimes but they also have the authority to implement such rules to make people stop doing illegal activities such as money laundering. You may think that you can't launder money even if you provided some credentials but that person will find a way to transfer money under radar that the platform think it is just a regular transfer funds.

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[Sithara007]

If you're operating in US jurisdictions (i.e., taking money from people living in the US or otherwise using the infrastructure of the US financial system), you're subject to the jurisdiction of the US government and US regulations. If you don't like that, don't operate in US territories. It's as simple as that.

They can put a disclaimer that US users are not allowed in their platform, but doing KYC for every user is not practical (as far as I know, Binance ask for KYC only of the daily trade volumes are above a specified limit). Putting up geography-based IP blocks doesn't work nowadays, because users will simply use a VPN. I would like to see how the exchange reacts to demands from the SEC. At least some of the charges made by the SEC will not stand in the court, and this legal battle will go on for at least a few years.

The report claims that some of the accounts received as much as $100 million in funds. In that case the KYC is clearly done here and if something is wrong with the transactions it is the duty of the law enforcement authorities to investigate it. I don't think that Binance is responsible, unless the authorities have specifically warned them to freeze these accounts.

[jaysabi]

Nah, we can't force exchange to take the blame since it's not them who made such crimes but they also have the authority to implement such rules to make people stop doing illegal activities such as money laundering. You may think that you can't launder money even if you provided some credentials but that person will find a way to transfer money under radar that the platform think it is just a regular transfer funds.

The onus is on the exchange to monitor for evidence of money laundering. That requires KYC and a program that identifies red flags and devises a method for detecting them. Customers attempting to get around KYC or making frequent short-duration deposits and withdrawals are two obvious red flags.

[lixer]

Binance will be ready also for this kind of investigation. They are moving their location for some legal reasons, and they know about what will happen. For sure, they have legal team already looking into this situation. As top 1 exchange, they should know better if the government is already after for them. This is also the reason why they created Binance.US, just to cater the US residents. They know their possible legal situations that they may face. I don't think they can easily topple a reputable exchange without valid reason.

I have been a trader at Binance for years and I never felt any problem with the platform but recently even I feel something is going on with them because suddenly they would stop withdrawals and maintenance would happen at weird times. I heard some people on twitter even complaining that their stop-loss orders didn't get triggered.

I don't know why they stop withdrawals during a crash, people have their coins on your exchange and they should have absolute control when they want to withdraw and Binance should not have a reason to hold the coins people deposited, no one is asking Binance to send their own coins. I think the investigation is important and good that it's happening now because they should realize that it's not okay to hold someone's money when they need it the most.

[Shasha80]

Binance will be ready also for this kind of investigation. They are moving their location for some legal reasons, and they know about what will happen. For sure, they have legal team already looking into this situation. As top 1 exchange, they should know better if the government is already after for them. This is also the reason why they created Binance.US, just to cater the US residents. They know their possible legal situations that they may face. I don't think they can easily topple a reputable exchange without valid reason.

I have been a trader at Binance for years and I never felt any problem with the platform but recently even I feel something is going on with them because suddenly they would stop withdrawals and maintenance would happen at weird times. I heard some people on twitter even complaining that their stop-loss orders didn't get triggered.

I don't know why they stop withdrawals during a crash, people have their coins on your exchange and they should have absolute control when they want to withdraw and Binance should not have a reason to hold the coins people deposited, no one is asking Binance to send their own coins. I think the investigation is important and good that it's happening now because they should realize that it's not okay to hold someone's money when they need it the most.

I'm like you've been using Binance for a long time, even forgetting what year I first started using Binance. And so far there have been no problems
using Binance, everything has gone smoothly without any problems. But due to the pandemic I ran into a bit of financial trouble, so it's been
almost a year since I stopped trading on Binance. So I don't know right now Binance stop withdrawals, but because Binance is the best exchange,
i am sure they stop withdrawals only temporarily and may not be for a long time. Because they will keep their reputation, Binance's struggle to be
the best exchange has not been an easy one, so they will try to provide the best for their users.

[Cling18]

This already happened before but since Binance is trusted and has a strong foundation, they couldn't bring it down or rather break the trust of most users for it. If this case against Binance would be proven true, I'm sure that the said exchange will be able to face it and be accountable for it. I think it isn't just Binance that to be blamed but the launderers involved in it.

[wahyu wida]

This already happened before but since Binance is trusted and has a strong foundation, they couldn't bring it down or rather break the trust of most users for it. If this case against Binance would be proven true, I'm sure that the said exchange will be able to face it and be accountable for it. I think it isn't just Binance that to be blamed but the launderers involved in it.

as happened before, at that time binance was hacked, and they were able to handle it satisfactorily. and I think for this of course I also have the same thought, that they will be able to solve it. With Binance's biggest or even biggest customers, I believe Binance is not going to break it

[bitterguy28]

What do you think ?
This could be a big deal.
Would it drive the price down ?

Well having this news alone does not bring any badness to the market price but of course eventually it blended with other bad news that's why the price of bitcoin now is suffering very badly.

I think we need to expect more of this if the cases progress and comes from investigation to finalization of filing cases.

This already happened before but since Binance is trusted and has a strong foundation, they couldn't bring it down or rather break the trust of most users for it. If this case against Binance would be proven true, I'm sure that the said exchange will be able to face it and be accountable for it. I think it isn't just Binance that to be blamed but the launderers involved in it.

We cant actually tell mate because even how trusted and strong a company but if the internal issue comes strong as well then they will be in bad shape.

[TheGreatPython]

I have a feeling this recent Binance FUD is a coordinated effort and we will forget this is few months when the market rebound. Binance team know this and are not stupid not to take strong people to join their side, they have the money to pay now for political influence and this will help them have soft landing

I don't think they will get away if they have indeed made some mistakes just like how XRP was never able to solve their problems with SEC. That said, it also shows how easy it is to have issues but keep going in this market.

If an exchange doesn't do KYC, it ought to be shut down. If an exchange facilitates tax evasion, it ought to be shut down. I don't know if Binance is doing either, I suppose that's what the investigation is about. However where there's smoke there's usually fire. This isn't some wild fishing expedition. The investigators probably have a pretty good idea of what they're going to find, which is the genesis of the investigation.

Binance asks for KYC once the limits are above the minimum so I don't think that is an area of concern at all. There are some limits upto which there is no need for KYC because you aren't taxable and they are operating on that same logic. If a trader is trading/depositing/withdrawing below the minimum threshold then they don't need to verify their identity.

[Fortify]

What do you think ?
This could be a big deal.
Would it drive the price down ?

I think it could have a bit of influence on some particular Cryptos which are not listed everywhere. For example Shiba is still being listed but slowly. Therefore it might cause a decrease in Price of such cryptocurrencies if there are some problems.

While I like the trading facilities of Binance, the fact that their fees are so high shows that they aren't really interested in working for small time cryptocurrency holders. They had a fee based on a rather high fixed amount that had not been changed through months of Bitcoin rises - so it ended up as a minimum of $25-30 no matter what the amount. They strike me as a rather greedy set of company owners and they will eventually get replaced by other exchanges that have lower fees. To be responsible for almost a 3rd of all tracked money laundering is going to put a huge target on their back with the feds and shows they weren't bothered with knowing where the money was coming from. These sort of money laundering stories if true can stop them becoming a wall street stock like Coinbase.

[jaysabi]

If you're operating in US jurisdictions (i.e., taking money from people living in the US or otherwise using the infrastructure of the US financial system), you're subject to the jurisdiction of the US government and US regulations. If you don't like that, don't operate in US territories. It's as simple as that.

They can put a disclaimer that US users are not allowed in their platform, but doing KYC for every user is not practical (as far as I know, Binance ask for KYC only of the daily trade volumes are above a specified limit). Putting up geography-based IP blocks doesn't work nowadays, because users will simply use a VPN. I would like to see how the exchange reacts to demands from the SEC. At least some of the charges made by the SEC will not stand in the court, and this legal battle will go on for at least a few years.

The report claims that some of the accounts received as much as $100 million in funds. In that case the KYC is clearly done here and if something is wrong with the transactions it is the duty of the law enforcement authorities to investigate it. I don't think that Binance is responsible, unless the authorities have specifically warned them to freeze these accounts.

Lmao, KYC on every customer is not only practical, it's required. AML requirements go far beyond the SEC.  The requirement comes from the Bank Secrecy Act and the USA PATRIOT Act, which are way more serious and less forgiving than a civil action from the SEC.  If you're violating AML laws, you'll be dealing with FinCEN, not the SEC.

[uneps]

Binance is one of the largest exchanges in the world.  I don't think that binance is doing any evasion.  In the crypto world there are many competitors who might be able to create bad news to bring down their rivals.  The decline in coin prices that he is experiencing in this month is due to a lot of bad news that he gets.  And there are some countries that are against cryptocurrencies.  I personally think.  The decline in coin prices so far is because many are panic selling.  Because they are afraid that their income will decrease.

[zanezane]

Binance is one of the largest exchanges in the world.  I don't think that binance is doing any evasion.  In the crypto world there are many competitors who might be able to create bad news to bring down their rivals.  The decline in coin prices that he is experiencing in this month is due to a lot of bad news that he gets.  And there are some countries that are against cryptocurrencies.  I personally think.  The decline in coin prices so far is because many are panic selling.  Because they are afraid that their income will decrease.

They might be doing or they might be not but one thing is for sure, this is a move by the elites to try and pressure crypto related businesses to make sure that they are still the boss, this is an old school tactic, lawsuit or investigation to make sure that they will answer to it because the one under investigation has no choice but to comply because the otherwise will make them look guilty.

[Yaunfitda]

Binance is one of the largest exchanges in the world.  I don't think that binance is doing any evasion.  In the crypto world there are many competitors who might be able to create bad news to bring down their rivals.  The decline in coin prices that he is experiencing in this month is due to a lot of bad news that he gets.  And there are some countries that are against cryptocurrencies.  I personally think.  The decline in coin prices so far is because many are panic selling.  Because they are afraid that their income will decrease.

We can't really say for sure what fraudulent practices is Binance doing from behind. That's why they are in the hot seat right now. Yes, they are on top tier exchanges, but it doesn't mean they are not doing some malpractice and evasion, hence they are being investigated today.

We can't tie in this investigation to the decline of the market, there are a lot of FUD going around. In any case, if nothing has found on Binance then good, all they have to do is to cooperate on the investigation if they have nothing to hide.

[perfect999]

We can't really say for sure what fraudulent practices is Binance doing from behind. That's why they are in the hot seat right now. Yes, they are on top tier exchanges, but it doesn't mean they are not doing some malpractice and evasion, hence they are being investigated today.

We can't tie in this investigation to the decline of the market, there are a lot of FUD going around. In any case, if nothing has found on Binance then good, all they have to do is to cooperate on the investigation if they have nothing to hide.

Their partner/sister site WazirX is under some review as well because they have failed to report AML or some money laundering activities from some users which also involved Binance as users were able to change their coins into USDT and transfer to Binance. I am not entirely sure of the story but from my understanding that was the problem.

Binance no doubt so far has a pristine reputation and the user experience is pretty excellent too but like you said, that doesn't mean they cannot indulge in illegal and market manipulation activities. It's quite easy for such a giant exchange to use the liquid funds on them and manipulate the market to juice out money from small traders on their platform, especially the ones doing futures trading because a little manipulation costs them everything.

[jaysabi]

Binance is one of the largest exchanges in the world.  I don't think that binance is doing any evasion.  In the crypto world there are many competitors who might be able to create bad news to bring down their rivals.  The decline in coin prices that he is experiencing in this month is due to a lot of bad news that he gets.  And there are some countries that are against cryptocurrencies.  I personally think.  The decline in coin prices so far is because many are panic selling.  Because they are afraid that their income will decrease.

They might be doing or they might be not but one thing is for sure, this is a move by the elites to try and pressure crypto related businesses to make sure that they are still the boss, this is an old school tactic, lawsuit or investigation to make sure that they will answer to it because the one under investigation has no choice but to comply because the otherwise will make them look guilty.

No it's not a move by the "elites" to try and pressure crypto related businesses. It's a move by law enforcement to ensure that Binance isn't complicit in money laundering. The confidence with which some of you spout off conspiracy theories make the rest of us rational crypto folks look bad.

[inoes]

They are very intent on doing FUD.  by interrogating Binance they think the market will wobble and can buy cheaply.  we know binance is the number 1 exchange in terms of volume, security and trustworthiness.  so it is very natural that the crypto community will be sensitive.

[ILuckyGuyI]

This was no more than a FUD attempt, in my opinion. Because I don't think that they are related to tax frauds or money laundering at all. Binance is the best crypto exchange in the market and I trust them about doing their job really good.

[Princejebs]

Nothing wi actually happened, it's just the same government here and there thing. Bittrex was one project who has been haunted for nmany years for manipulation of bitcoin price but later settled it with the court and now the government is now silence ever since then.
Binance is good exchange and they mean very well for their self and their exchange, never had any issue since have been there, I hope this doesn't bring the platform down for their reputation over the years.

[AmoreJaz]

Nothing wi actually happened, it's just the same government here and there thing. Bittrex was one project who has been haunted for nmany years for manipulation of bitcoin price but later settled it with the court and now the government is now silence ever since then.
Binance is good exchange and they mean very well for their self and their exchange, never had any issue since have been there, I hope this doesn't bring the platform down for their reputation over the years.

this is the reason why binance itself can handle this situation if bittrex can surpass this kind of investigation, why not binance? also, based from this article , they are under scrutiny because of those US individuals that may be violating the anti-money laundering and tax-related laws. but this is the reason why there is Binance.US, just to cater the US citizens, and so I believe, binance is following the protocols of the US govt in terms of money laundering and tax laws. we will see if there will be developments on this inquiry in the next coming months. i dont think we need to worry about such news. sometimes, people are just making it a big deal even if there's nothing in it.