Binance failed to prevent suspicious accounts from moving $144M after 2023 plea

[_act_]

After Binance was accused of money laundering in 2023 which sent CZ to 4 months in jail, the court also told him to pay millions of dollars, and Binance was finned $4.368 billion, it is now reported that Binance failed to prevent 13 suspicious accounts from operating after the lawsuit and fine.

You can read the full news on https://decrypt.co/353279/binance-failed-to-prevent-suspicious-accounts-from-moving-144m-after-2023-plea-deal-report

I do not know if we are still going to further discussing about this if it escalate into another lawsuit or not.

[un_rank]

I have checked but I cannot find how Financial Times were able to get access to data from Binance directly with the intention of releasing it this way. This could very well be true as the market is still very unregulated even with the high profile cases that get attention and the huge payouts that results from that.

If this is true, we should see them get additional sanctions in the coming months.

I do not know if we are still going to further discussing about this if it escalate into another lawsuit or not.

If it directly breaches the agreement Binance signed, it should be a direct sanction rather than a lawsuit.

- Jay -

[logfiles]

The truth is despite that mandatory KYC verification. Most of those exchanges are not so strict when it comes to the flow of funds like the way casinos usually do. For example, how many times have you heard Binance block peoples funds in the scam accusations board vs most casinos? Very few times

I think the regulators want Binance to start getting stricter, ask for source of funds, proof of address etc. I have a Binance account, and they have never even asked me for proof of address, source of funds, how much I earn etc, yet I can move funds back and forth without any blocks.

[noorman0]

I have checked but I cannot find how Financial Times were able to get access to data from Binance directly with the intention of releasing it this way.

The report explains that FT obtained the leaked data.
However, this article is investigative journalism, and FT is inherently involved in publishing such news.

FYI, the FT also has history of controversies in the past with its writers and investigative articles. I think this is another chapter in Binance's struggle with geopolitical pressure given that the FT's independence has long been questioned.

[Darker45]

This is interesting, especially if the reason is that they overlooked these accounts, the amounts and movements of funds, and the accounts linked to them. How could they miss them? But if Binance failed to flag these accounts, what about FinCEN? FinCEN is tasked to monitor Binance as part of the settlement. So, if there's a failure, it's as much Binance's as FinCEN's. If an additional fine is imposed on Binance because of this, perhaps it could be discounted or even waived.

[hugeblack]

After reading this part^[1], I believe that the purpose of such articles is to put more pressure on the platform to increase compliance, as the total amounts from 13 accounts are less than $500 million (all of which were transferred from Binance to bank accounts), which is an action that I don't think someone who wants to launder money would do.

[1]

Most of the $29 million had come from four cryptocurrency wallets associated with Syrian Tawfiq Al-Law, who has been alleged to have transferred illicit funds for Hizbollah, the Houthis in Yemen and a company with links to the Assad regime.

[FinneysTrueVision]

Binance claims to have hundreds of millions of users worldwide. When you have that many customers, there are eventually going to be some cases of suspicious activity. It does not mean they are intentionally trying to assist those people in evading sanctions.

If we look at the activity that is supposedly considered suspicious, these include things like being in Venzuela and being accused by Israel of being terrorists. We know these sanctions have nothing to do with user protection and are just a way for rogue countries to try and impose their will on the rest of the world through coercion.

[Wiwo]

I have checked but I cannot find how Financial Times were able to get access to data from Binance directly with the intention of releasing it this way.

The report explains that FT obtained the leaked data.
However, this article is investigative journalism, and FT is inherently involved in publishing such news.

FYI, the FT also has history of controversies in the past with its writers and investigative articles. I think this is another chapter in Binance's struggle with geopolitical pressure given that the FT's independence has long been questioned.

Treat this news as if it social media news and also as unverified just same way you treat third-party reviews about companies, most time their are used as tool to do whatever shit stuffs, political and otherwise.

[FirmWars]

it is now reported that Binance failed to prevent 13 suspicious accounts from operating after the lawsuit and fine.

I do not know if we are still going to further discussing about this if it escalate into another lawsuit or not.

This is likely to escalate to another lawsuit, after reading the link you provided, I learned that this 13 suspected accounts have been doing transactions on the exchange since 2021 even before they were sanctioned in 2023 and after the sanction they were supposed to monitor those accounts strictly and put restrictions on those accounts since it was already suspected and yet they have continued to do suspicious transaction and binance ignored it, meaning they may likely be sanctioned again if it's proven that this accounts are involved in scams and money laundering. Binance has agreed for a more strict anti money laundering control during that their sanction and if this case is escalated, it could lead to a second sanction. Unless they have some evidence to prove that those accounts are not controlled by bad people.

[aysha9853]

This case just confirms that KYC alone doesn’t mean real control exchanges collect your ID, but the monitoring of suspicious behavior is another story Binance isn’t unique here, but when you’re the biggest player, mistakes get more attention for users, this is just another reminder not to trust exchanges more than necessary.