Binance sued by CTFC

[TryNinja]

This is bad... really bad...

https://www.docdroid.net/60YAbCz/cftc-binance-pdf

Internal chat logs caught Binance's Chief Compliance Office (lol) talking about how terrorists only send small amounts to their exchange because "large sums constitute money laundering", his colleague replying that "can barely buy an AK47 with 600 bucks", and Binance's Money Laundering Reporting Officer (lol again) saying that they know shit is bad but they close their 2 eyes.

Internally, Binance officers, employees, and agents have acknowledged that the
Binance platform has facilitated potentially illegal activities. For example, in February 2019,
after receiving information “regarding HAMAS transactions” on Binance, Lim explained to a
colleague that terrorists usually send “small sums” as “large sums constitute money laundering.”
Lim’s colleague replied: “can barely buy an AK47 with 600 bucks.” And with regard to certain
Binance customers, including customers from Russia, Lim acknowledged in a February 2020
chat: “Like come on. They are here for crime.” Binance’s MLRO agreed that “we see the bad,
but we close 2 eyes.”

Also how CZ does a lot of insider trading against customers:

During the Relevant Period, Binance has traded on its own platform through
approximately 300 “house accounts” that are all directly or indirectly owned by Zhao, as well as
accounts owned by Merit Peak and Sigma Chain. Zhao has also traded on the Binance platform
through two individual accounts.

+ a lot more.

Someone is going to get arrested, or at least HEAVILY fined.

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[OmegaStarScream]

This is probably a good time to stay away from the platform or at least its token which doesn't seem to have been affected by the news.

Here's more for those who don't want to read the whole document: https://blockworks.co/news/binance-cftc-damning-quotes

Who’s in Chicago?

The complaint notes that a VIP team member contacted Zhao regarding a “Chicago-headquartered trading firm.”

VIP team member: Hi CZ . . . I went through list of affected API clients, it includes a number of large strategic accounts including [a Chicago-headquartered trading firm] who is currently is a top 5 client and 12% of our volume

Zhao: Give them a heads up to ensure they don’t connect from a us Ip. Don’t leave anything in writing. They have non us entities. Let’s also make sure we don’t hit the biggest market makers with that email first. Do you have signal?”

[bitmover]

This is probably a good time to stay away from the platform or at least its token which doesn't seem to have been affected by the news.

Certainly a good time to withdraw everything from binance.

Authorities will really do everything they can to fight money laundry. And all "suspicious "accounts may just get frozen at any time and have their funds taken hostage until you make a new kyc.

I have some bucks in binance now, I will just withdrawal them asap.

[BitcoinPanther]

Yeah withdraw every thing and wait for the development of the case.  I think it is still ok to use the services of Binance just make sure that after the transaction, withdraw all the funds out.

This is probably a good time to stay away from the platform or at least its token which doesn't seem to have been affected by the news.

And probably a good time to wait for the token to crash and buy some.  I think if worse came to worst, CZ will pay the fines  and their operation will be back to normal again. Unless this groups really wanted to takedown CZ and the binance operation.

If ever Binance is forced to shutdown, this is very bad news to the crypto industry, and many P2P traders will be affected(me included) aside from the regular market trading.

[Nwada001]

Binance is one of my favorite exchanges, which I use 4 or 5 days a week. Even with all this happening on centralized exchanges, I still happen to trust them more than the others because of their way of fixing problems very quickly and attending to one's needs.
But with this kind of attack on them from the CFTC, I think I should probably go end my ongoing future trade and withdraw my holdings back to my private wallet until everything is settled.
Although I strongly believe this might not really go very far, CZ always has a way of handling things. 😉

[ololajulo]

Are these allegations against Binance US or were they made before Binance left USA for Binance? For whatever reason, are they just seeing this, especially when there are allegations the exchange and the CEO are being targeted by the US government. Some reports claim China is courting some Hongkong exchanges to get back into bitcoin, and people interpret China's reaction as a financial war with the United States.

[dkbit98]

Someone is going to get arrested, or at least HEAVILY fined.

FUD incoming and doors are slowly closing... I will stay neutral in this case, I don't support Binance and I don't support government, they are both liars.
Funny thing is they collected all this chat information from Signal app that is supposed to be ''better'' than other alternatives in preserving privacy, so it makes you think twice before using this app.
Minimal thing anyone can do is to withdraw all the coins to non-custodial wallet, and use decentralized exchange alternatives.
If this happened with Binance US, can you imagine what is happening with Binance.com?  sAfU

[coupable]

Trouble has been chasing Binance for days, and this may be the most important of them. But the worst thing that happens is the position of Binance itself after a decision was issued, on the account of its CEO on Twitter, who only wrote “4” in a tweet referring to "Ignore FUD, fake news, attacks, etc."
What is happening with Binance confirms information that was reported two days ago about more than 220,000 Chinese users who bypass the Binance verification system KYC with the help of Binance support agents.

And probably a good time to wait for the token to crash and buy some.  I think if worse came to worst, CZ will pay the fines  and their operation will be back to normal again. Unless this groups really wanted to takedown CZ and the binance operation.

Is this really all that matters to you in all that is happening? Do you have an awareness of the size of the assets deposited on Binance by regular users like you and you, and how will those assets be frozen if any decision is issued to stop or freeze the platform? Your position seems strange to me, frankly.

[o48o]

-cut-
Someone is going to get arrested, or at least HEAVILY fined.

If they can milk money from this they rather take that then use more money to put him into prison. Also jailing CZ would probably have an impact to the crypto world that would ripple to economy in a bad way. As so many cryptos would just tank in panic. However this is very troubling news. These guys wont sue if they haven't already gathered evidence. It could be based on some mistake but i am sure it will get sorted out soon. Hopefully in a good way, otherwise bullmarket can wait.

[boyptc]

I've got little funds in Binance and all of those will be withdrawn later. I'm already thinking of getting out my funds and this news made it verified that I should really put it out even if I'm always there at most times to trade and do some spot and scalp trades.

I see that those were the reasons for being sued and while there's the file goes, CZ tweets that everyone shouldn't listen to the FUD that's being done to him.

Well, if it's proven and the court decides that he's guilty of it that's gonna be one of the worst part of himself and his business. While he's the one to speak out before the FTX debacle, here goes that he's on their shoe now.

[logfiles]

Also how CZ does a lot of insider trading against customers:

After getting millions or billions of dollars, why do this chaps keep getting greedier and greedier.

It's just a matter of time, CZ may not survive... They will get in all ways to net him.

A brief recent history

Arthur Hayes - Down
SBF- Down
Do kwon - Down
Justin Sun - On target

Someone is going to get arrested, or at least HEAVILY fined.

For the "heavy fines", they will happily pay it.

[stompix]

This is bad... really bad...

Or is it very good for bitcoin, and bitcoin alone!

Binance and CZ right now are not doing anything other than promoting shitcoins, trying to transform the p2p are in the most centralized market, promoting a stable coin that is backed by the same assets that SVB had, and more than everything, tax the hell out of people who want to withdraw bitcoins, not fake bitcoins not fake bitcoins token in their own wallet.

Binance getting wiped out or at least sent back to outside the top 10 exchanges and CZ finally being done with its #safu nonsense would be one of the best things and a hard lesson some shitcoins lovers need to be taught.

No real bitcoiner should defend Binance practices when they do things like this:



The moment you charge a fee of 400sat/b for a tx, or $13, or 8$ extra for actually less space used it means you have something against it.

[NotATether]

Arthur Hayes - Down

Technically he's not "down", as I still see him post on Medium time and time again - he's on house arrest apparently and wasn't jailed.

If they can milk money from this they rather take that then use more money to put him into prison. Also jailing CZ would probably have an impact to the crypto world that would ripple to economy in a bad way. As so many cryptos would just tank in panic. However this is very troubling news. These guys wont sue if they haven't already gathered evidence. It could be based on some mistake but i am sure it will get sorted out soon. Hopefully in a good way, otherwise bullmarket can wait.

If Binance goes down at this point then a LOT of people (including on this forum [not me]) will lose their coins. They have a reserve to prevent this kind of stuff from happening, so I imagine the fines will just be paid from the reserve.

[OmegaStarScream]

-snip-

I kind of agree, but at the same time, the collapse of Binance (the way FTX did) would probably send us back to the stone age. I can only imagine how the regulators would try to restrict us afterward.

It looks like there is currently some speculation that they might up end shutting down their operations in the US(Binance.us) as part of a settmenent[1]

[1] https://www.coindesk.com/business/2023/03/28/cftc-could-force-binance-to-cease-us-operations-as-part-of-settlement-bernstein/

[stompix]

-snip-

I kind of agree, but at the same time, the collapse of Binance (the way FTX did) would probably send us back to the stone age. I can only imagine how the regulators would try to restrict us afterward.

MtGox didn't send us to the stone age, more like the pre-medieval dark ages soon to be the industrial revolution 
The fact that they went only after specific cases, like a part of Kraken or Gemini staking activity, that they purposely left Coinbase or Bitstamp alone, or the only issue is with CEX being not FDIC insured while they claim it's obvious they have nothing with you as long as you play by the rules. If you want to run a business in a country, you play by the rules, and crypto trading is not ann should not be an exception.

From my point of view, as my family is doing business in the EU area, why should I follow 5 different health safety regulations and standards and meet them each time we sell products that sometimes barely have 10k in value and a few hundred euros in profits while those guys run billions from an off-shore company while giving a damn about laws?

And more importantly, why do we need them?
If at this stage when everybody that has access to the internet can buy BTC (Bitcoin!!!) without using a CEX and should understand the problem of not your keys, not your coins I see CEX as more of a problem then a helping hand.

It looks like there is currently some speculation that they might up end shutting down their operations in the US(Binance.us) as part of a settmenent[1]
[1] https://www.coindesk.com/business/2023/03/28/cftc-could-force-binance-to-cease-us-operations-as-part-of-settlement-bernstein/

Hihi, yeah, trying to downplay the importance of binance.us with only 5% ignoring that
https://www.coindesk.com/business/2023/03/27/binance-and-cz-sued-by-cftc-over-regulatory-violations/

Binance knew that U.S. customers continued to comprise a substantial proportion of Binance’s customer base,” the filing said, citing internal monthly reports sent to Zhao, which said that, even as of June 2020 after controls had supposedly been implemented, 17.8% of customers were based in the U.S.

And those are customer numbers, not trading volume, expect the median average of funds to be far above the rest of the world.
I want to hear him screaming FUD, everything is ok, threatening people with lawsuits just as he was doing while fleeing Japan, this guy is worse than SBF right now, the end of BNB will be the best thing for BTC.

[Dr.Bitcoin_Strange]

In my opinion, Binance really got a lot more attention than every other exchange. Some may say Binance does things for its own interests; even if that's true, I still found the exchange more realizable than other exchanges.

There's this mafia quote that says, "When a business or company becomes too successful, the government will take note and always keep an eye on it." CZ has had great success in the cryptocurrency space, and that has made him a big catch in the industry. If he is out of this shite, then he should sharpen his knife and prepare for bigger challenges, because I believe the government will look for something to always hold him with.

[KingsDen]

Cz and Binance has been in the news recently for so many unpleasant reasons. I am not defending Binance in whatever illegal activities they indulge but I am afraid of the fud because if anything happens to CZ Binance, believe me the cryptocurrency market would be negatively impacted.

Tbh, I am not prepared for that. We have been in a prolonged bear market and I wouldn't want anything that will force us back to where we resisted in the chart now we are seeing green. If it happens it may prevent 2024 halving bull.

[bitmover]

-snip-

I kind of agree, but at the same time, the collapse of Binance (the way FTX did) would probably send us back to the stone age. I can only imagine how the regulators would try to restrict us afterward.

MtGox didn't send us to the stone age,

I agree with stompix .

Bitcoin doesn't need FTX neither binance neither mtgox.

If those companies dies other ones (probably better ones) will fill their place .

Regulations cannot stop bitcoin,  regulations can only regulate exchanges.


If binance collapse the whole market will suffer , but it is also probably that money from shitcoins (which is a lot) will just flow to bitcoin

[RapTarX]

Also how CZ does a lot of insider trading against customers:

It was expected when they decided to exit from Ontario last year (or 2021). When they were at risk of getting sued there, they packed their bad from Ontario. I'm not surprised at all. That's how exchanges make big money; deceiving us with our money!

Cz and Binance has been in the news recently for so many unpleasant reasons. I am not defending Binance in whatever illegal activities they indulge but I am afraid of the fud because if anything happens to CZ Binance, believe me the cryptocurrency market would be negatively impacted.

CZ's monopoly is far worst than you can imagine! Having such a person in this space is very bad. Soon, you will realize.

[DaveF]

1) Oh well sucks to be Binance

2) What the hell is wrong with people who work there and everyplace else lately. Don't they know every email, every text, every DM....EVERYTHING is recorded for all time and it's going to come back to you at some point. We laugh at this comic but it's true:



3) Makes you wonder how much other information is going to come out from people looking to save their own ass. If they found this, what didn't they find yet.

-Dave