Binance’s Russian Activities Under Scrutiny: Former SEC Chief Raises Concerns of Imminent DOJ Action

The post Binance’s Russian Activities Under Scrutiny: Former SEC Chief Raises Concerns of Imminent DOJ Action appeared first on Coinpedia Fintech News

John Reed Stark, a man who once led the SEC’s Internet Enforcement, has seen enough. He took to Twitter with an astonishing claim: Binance could be, in his humble opinion, “running an international money laundering service.”

Stark’s tweet calls attention to the Wall Street Journal report that sheds light on Binance’s elaborate mechanisms that potentially allow sanctioned Russian banks to move funds into digital tokens.

Binance’s Complex Web

The Wall Street Journal’s report reveals that Binance continues to handle substantial ruble trading volumes, even after scaling back its business in Russia. Through a complicated system of intermediaries, Binance’s clients can convert funds from sanctioned banks into balances on the Binance platform. In July alone, Binance handled $8 billion in ruble-to-crypto trades, mostly for tether, a stablecoin.

Peer-to-Peer Transactions

Binance facilitates peer-to-peer trades, often involving banks on Western blacklists. This has enabled Russians to evade sanctions by converting rubles into digital currencies. Peer-to-peer services are identified by the U.S. Treasury Department as potential means of evading U.S. sanctions, raising eyebrows at various regulatory agencies.

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“Binance follows the global sanctions rules,” insists a spokesperson for Binance, emphasizing that they have no relationships with any banks, in Russia or elsewhere, for its peer-to-peer service.

The Ripple Effect: Legal Troubles Mounting

Binance’s legal issues in the U.S. are beginning to pile up. The SEC and the U.S. Commodity Futures Trading Commission have already accused Binance and its founder Changpeng Zhao of a series of violations. These new revelations might add fuel to ongoing investigations by the Justice Department.

The question that John Reed Stark is posing to the world, and to us, is simple: Is this what’s happening right under our noses? Is Binance part of a network that’s allowing these sanctioned banks to move money freely? Whether or not his prediction of an imminent DOJ indictment comes true, one thing is clear: The spotlight on Binance’s activities in Russia has grown considerably brighter, and the world is watching closely. This story is just getting started, and you won’t want to miss what comes next.