The US Department of Justice is concerned that the world’s largest crypto exchange could steal the crypto assets of American citizens using FTX-style fraud, WSJ sources say.
Financial regulators began pursuing Binance and its subsidiary Binance.US back in June, suspecting that the exchange’s operators were managing illegal securities trading. The American regulator claims that the administration of the cryptocurrency platform mixed billions of client deposits and its own assets without the possibility of adequate separation.
Changpeng Zhao himself resigned as CEO of Binance last week after pleading guilty to violating the exchange’s anti-money laundering rules. As the US Department of Justice stated, citing leaked correspondence from Binance employees, back in 2019, company employees boasted that they could easily launder drug money.
According to American law, Zhao faces up to 18 months in prison. Previously, the businessman was released from custody on bail of $175 million.
Source: Bits
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