Crypto Giant Defends Against Allegations of Moving Billions Linked to Iran
Binance, a leading cryptocurrency exchange, has publicly refuted allegations that it fired employees investigating potentially illicit fund movements. The exchange responded to claims made by The Wall Street Journal regarding its compliance practices.
Allegations of Compliance Violations
On Monday, The Wall Street Journal reported that Binance had terminated staff members who were involved in probing a $1 billion transfer linked to Iran-backed terrorist groups. This report cited internal documents and statements from insiders familiar with Binance’s operations.
- The report accused Binance of dismantling its internal investigation.
- Binance executives, including co-CEO Richard Teng, vehemently denied these claims.
- Teng stated that the WSJ’s reporting was inaccurate and defamatory.
Binance’s Official Response
In a post on social media platform X, Richard Teng shared a letter from Binance’s counsel, asserting that the publication’s claims were unsubstantiated. He emphasized the exchange’s ongoing commitment to compliance, asserting that their actions were misrepresented.
The exchange indicated that the employees in question had resigned rather than being terminated for raising concerns about compliance. Binance insisted that they had undertaken a thorough internal review, which found no violations of sanctions laws.
Additional Findings and Investigations
Despite Binance’s assertions, the WSJ and other sources reported that investigations uncovered continuous compliance issues at the exchange. These included connections to additional funds, with an estimate of $1.7 billion potentially transferred to Iran-backed organizations through 2024 and 2025, as outlined in secondary reports.
- Binance faced scrutiny following a settlement with the U.S. Department of Justice in 2023.
- The exchange admitted to previous violations of federal money laundering statutes.
- Reports suggest that compliance failures persisted even after the settlement.
Conclusion
Binance continues to assert that it maintains robust compliance controls, claiming that reported suspicious activities indicate effective monitoring. A further report regarding ongoing investigations is expected to be submitted to the U.S. Justice Department by February 25.
For ongoing updates and industry insights, follow Filmogaz.com.
