Who are they?
Founded in 2017, Binance is considered the largest cryptocurrency exchange in the world after taking into account its daily trading volume. With headquarters in the Cayman Islands, the company has had its share of involvements in controversies while climbing the ladder to become the largest exchange as claimed.
Binance and the Accusations
In recent news, Binance Holdings Ltd. has been put under investigation in the case of encouraging illegal activities behind the curtain of the unregulated market. The investigation led by the Justice Department and the Internal Revenue Services accused this cryptocurrency exchange of giving a medium of financial support to the illicit activities happening in the US.
Ever since it was founded around 4 years ago by Changpeng Zhao, Binance has been successful in leapfrogging its rivals in the short tenure that it has served in the market.
However, just like every other firm in this specific industry, Binance has also measured an extraordinary growth spurt outside government supervision.
The choir of doubts and speculations
Last year, Binance came into the negative spotlight when Chainalysis Inc., a blockchain forensic firm, stated that Binance Holdings Ltd. has the most fund flow tied to criminal activity than any other cryptocurrency exchange. It also stated that according to their statistics, 27% of total criminal transactions were through Binance. In reply to this, Jessica Jung who is the spokesperson for Binance denied these claims by stating that Binance abides by the legal obligations and also ensures that illegal activities do not surge using the exchange as a medium by incorporating anti-money laundering principles and tools that are used to detect suspicious activities by various financial agencies.
According to US officials, Cryptocurrencies were explicitly used to hide illegal transactions such as drug deals and thefts. They also expressed major concern over the growing involvement of Binance in illegal activities that might affect the public as well. Binance reportedly suffered a loss after the investigation into the company was reported by major news companies. Along with this, the authorities also doubt whether Binance allows their investors to buy derivatives linked to digital tokens which normally is illegal for a US citizen to do unless the exchange is registered under CFTC.
What does Binance have to say?
In order to maintain their public figure in society, Binance had been employing their spokespersons to do the job. However, after the major accusations against the company, the founder himself responded by stating that his company abides by US rules and blocks US citizens who are suspected of being involved in illegal activities such as money laundering through special and advanced technology.
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