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 <p class="is-style-lead">The government says Binance has agreed to look back and report to FinCEN about the suspicious transactions which it had failed to report.</p>
 <p>Cryptocurrency exchange Binance “<a rel="noopener noreferrer nofollow" title="willfully" href="https://thebittimes.com/tag/willfully.html">willfully</a> <a rel="noopener noreferrer nofollow" title="failed" href="https://thebittimes.com/tag/failed.html">failed</a>” to <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a> to regulators more than 100,000 <a rel="noopener noreferrer nofollow" title="transactions" href="https://thebittimes.com/tag/transactions.html">transactions</a> on its platform tied to illicit activity such as darknet, <a rel="noopener noreferrer nofollow" title="scams" href="https://thebittimes.com/tag/scams.html">scams</a>, <a rel="noopener noreferrer nofollow" title="fraud" href="https://thebittimes.com/tag/fraud.html">fraud</a> and other malicious activity.</p>
 <p>In a press release published on Nov. 21, the U.S. Treasury said that Binance also failed to implement an effective anti-money laundering program and failed to perform know-your-customer (KYC) regulations, required under U.S. law, on a “large number of its users.”</p>
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  <p>“This meant that Binance allowed a range of illicit actors to transact freely on the platform, damaging the integrity of the financial system.”</p>
  <p>U.S. Department of the Treasury</p>
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 <p>Moreover, the Treasury noted that Binance also failed to mitigate risks related to “anonymity-enhanced cryptocurrencies,” allowing its users to “obscure information about the origin and destination of transactions.” The government also revealed that Binance’s ex-Chief Compliance Officer told personnel that Binance founder and ex-CEO Changpeng Zhao made a separate policy to “not report such activity.”</p>
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 <p>In early 2022, Reuters issued a special report noting that Binance “acted against its own compliance department’s assessment” by offering services to customers in countries, including Russia and Ukraine, judged to be of “extreme” money-laundering risk.</p>
 <p>At the time, Reuters also revealed that Binance’s ex-Chief Compliance Officer Samuel Lim raised concerns about the weak KYC system. Former executives at Binance reportedly warned Zhao about issues with KYC, but the Binance founder ignored them.</p>
 <p>Reuters has repeatedly targeted Binance and its ex-CEO thorough 2022 with a series of special reports, shedding light on the exchange’s close relationship with Russia’s state security service as well as its plan to dodge U.S. and U.K. regulators.</p>
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    <p lang="en" dir="ltr">They ignore facts, take words out of context, re-use 3 year old "news" (that was/is inaccurate).<br><br>Here is an example. The "Tai Chi" doc was brought up again. When we show direct evidence it was never adopted, they ignore it.<br><br>Email from Nov 2018. pic.twitter.com/hL88f6AeUD</p>— CZ Binance (@cz_binance) October 18, 2022
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 <p>Zhao constantly denied the allegations, saying that journalists were “inaccurate” as they “ignore facts, take words out of context, re-use 3 year old ‘news’ (that was/is inaccurate).”</p>
 <p>On Nov. 21, 2023, Binance’s Zhao stepped down as CEO and pleaded guilty&nbsp;to violating U.S. anti-money-laundering requirements, writing on X that he had “made mistakes” and now “must take responsibility.”</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Coinbase CEO Brian Armstrong goes on the offensive amidst Binance legal woes
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/binance-willfully-failed-to-report-over-100k-transactions-linked-to-fraud-and-scams-u-s-treasury-says-tbt71184.html">https://thebittimes.com/binance-willfully-failed-to-report-over-100k-transactions-linked-to-fraud-and-scams-u-s-treasury-says-tbt71184.html</a></p>

Binance ‘willfully failed’ to report over 100k transactions linked to fraud and scams, U.S. Treasury says

TheBitTimes

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