Langgam Pos - Binance, the world's largest cryptocurrency exchange by trading volume, and its founder Changpeng Zhao (CZ) are facing yet another lawsuit, this time linked to money laundering accusations.
According to a new class action lawsuit reported by Coinmarketcap on Friday, August 23, 2024, Binance allegedly ignored its obligation to register with relevant authorities and failed to implement adequate anti-money laundering protocols in an effort to profit from the U.S. market.
The lawsuit claims that Binance's actions turned Binance.com into a hub for criminals seeking to launder money. It further accuses Binance and CZ of prioritizing profits over the law, providing criminals with a means to obscure their illegal activities.
Moreover, Binance.US, Binance's U.S. subsidiary, is alleged to have been created for no other reason than to distract U.S. regulators.
Bill Hughes, an attorney at the blockchain software firm Consensys, stated that the case is unlikely to go to trial, as Zhao would likely seek a settlement. Hughes also mentioned that a massive on-chain analysis campaign would be expected if the case did proceed to trial.
Asset Tracking
The plaintiffs argue that blockchain records should enable the tracking of stolen assets. However, Binance's platform allegedly allows criminals to effectively erase the link between stolen assets and their source.
They claim that without Binance's role in laundering stolen funds, authorities would have a better chance of tracking these assets. Binance, on the other hand, contends that it would be possible to recover stolen funds by tracing blockchain activity.
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