Reuters, an international news agency, published an exposé about Binance, the world’s largest cryptocurrency by client count, on Monday, June 6.
For their damning revelation, Binance is now under the U.S. Securities Exchange Commission (SEC) radar. Sources indicate that they are investigating whether Binance broke its laws during its initial coin offering in 2017.
The SEC is now investigating Binance's #BNB cryptocurrency.
— Watcher.Guru (@WatcherGuru) June 6, 2022
The investigative report by Reuters claims that in five years, Binance has helped facilitate illicit transactions running to the tune of about $2.35 Billion. One major case Reuters pointed out was the cyber heist carried out by the North Korean hacking group known as Lazarus. They claim that they intended to fund North Korea’s nuclear weapons program.
To corroborate these claims, the United States’ FED hired Chainalysis, a crypto research software company, to trace the illicit flow of money. In its findings, Reuters said Binance received illicit funds amounting to over $770 million in 2019 alone. A second report made by Crystal Blockchain, an analytics company, revealed that Binance received $780 million from a Russian language site called Hydra.
Reuters have since confirmed the total sum to match the estimates retrieved from examining court records, statements by law enforcement, and blockchain data. Since the news came out, Binance’s BNB is down five percent in the last trading week according to trackers.
Does This Spell Doom For Binance and BNB?
An article published on Reddit is of the view that the whole case has a biased undertone. This is because Reuters ignored Binance’s detailed response.
The Redditor comments:
“All crypto transactions made in 2021, 0.15 percent were associated with illicit activity, and on the other hand, the United Nations estimates that between two and five percent of traditional fiat (cash), about $800 billion to $2 trillion in current USD, was associated with some type of illicit activity. Crypto is incredibly transparent, infinitely more so than the traditional cash economy, and this is well-documented. So you tell us where the real issue is regarding money laundering?”
Binance won’t be the SEC’s first investigation, as Uniswap–a decentralized exchange, was once on its radar. The SEC also has an ongoing case against Ripple Inc., the blockchain company, whom the regulator accused of raising over $1 billion by selling investment contracts.
Lucky Elephant Club: Unleashing the Power of NFTs in a Thriving Ecosystem
Crypto Community Warned Against Fake Arbitrum Airdrops
Is Kava a Good Investment? Analyzing the Potential Risks and Rewards
The Arbitrum Community Demands Return of 700M ARB Tokens to DAO Treasury
Investing in Arbitrum (ARB): Is it a Smart Move?
- July 2023
- April 2023
- February 2023
- January 2023
- December 2022
- June 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020