From Child Porn To Terrorist Organizations, A Rundown Of The Binance Charges

Binance has pleaded guilty to breaking US money laundering laws. The US Department of Treasury has highlighted all the criminal failings of Binance, charging the exchange for its negligence in reporting illicit transactions that occurred on its platform. 

Charges For Unreported Terrorism Transactions

The United States Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), has taken legal actions against Binance and its CEO, Changpeng Zhao. 

The enforcement agency charged the exchange with violating US money laundering laws. Following his indictment, Zhao has pleaded guilty and resigned from his position as CEO. The crypto exchange has also agreed to settle charges of $4.3 billion. 

The Secretary of the US Treasury Janet L. Yellen stated that the crypto exchange failed to comply with US laws in pursuit of profits, allowing illicit transactions to occur within its platform. 

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said Yellen. 

The charges Binance faces include a failure to establish and maintain an anti-money laundering program to protect its customers and the American National Security. 

According to the enforcement agency, the exchange willfully neglected to present information regarding a series of transactions executed on its exchange linked to terrorist groups such as Islamic State of Iraq (ISIS), Al Qaeda, Hamas’ Al-Qassam Brigades, and the Palestinian Islamic Jihad (PIJ).

“Binance willfully failed to report well over 100,000 suspicious transactions that it processed as a result of its deficient controls, including transactions involving terrorist organizations, ransomware, child sexual exploitation material, frauds, and scams,” the FinCEN stated.

Transactions On Child Porn Linked To Binance Exchange

Among its long lists of charges, the FinCEN has also called out Binance’s non-compliance in reporting illicit transactions that involved the spread of child pornography and sexual abuse materials on major websites. 

“Child Sexual Abuse Materials. Binance never reported transactions with websites devoted to selling child sexual abuse materials, including Dark Scandals,” the FinCEN said. 

Binance has also failed to disclose information on transactions involving ransomware, fraud-related services, illegal narcotics, large-scale hacks, and scams.

In response to the exchange’s numerous non-compliance violations, Janet L. Yellen has marked the enforcement actions towards Binance as an important moment in the digital asset industry.

She has given a stern warning to institutions that benefit from the US to diligently adhere to the country’s rules to ensure citizens are safe from terror threats and other criminal activities. 

“Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime, or face the consequences,” Yellen stated.