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Department of Justice Investigates Binance for Alleged Russian Sanctions Breach

Press Releases Crypto News BeInCrypto Department of Justice Investigates Binance for Alleged Russian Sanctions Breach

The U.S. Department of Justice (DOJ) is investigating whether Binance was used illegally by Russians attempting to bypass U.S. sanctions.

As Bloomberg reported on Friday, the inquiry by the Justice Department’s national security division is looking into whether Binance complied with its obligations to prevent sanctioned individuals from using the exchange in such a manner.

In its response, Binance stated that its know your Customer (KYC) protocols rival those in the traditional banking system, and every customer is required to go through the controls. The statement added:

“Our policy imposes a zero-tolerance approach to double registrations, anonymous identities, and obscure sources of money,”

Despite the exchange’s rhetoric, Binance did recently ease up limits placed on Russian users.

After curbing its service in the country following international sanctions, last month Binance started accepting payment with Russian bank cards. It also lifted a previous ban on Russian users holding crypto worth over 10,000 euros.

Binance Exchange’s Ongoing Sanctions Headache

Recent accusations are not the first time Binance has found itself in hot water over its use by sanctioned parties.

The Justice Department is also investigating the platform over similar claims that it enabled Iranians to skirt U.S. sanctions. Like Russia, Iran is subject to sweeping economic sanctions.

In fact, these are even more total to those imposed against Russia, and cryptocurrency exchanges are effectively banned from serving Iranian citizens or businesses.

In another recent instance of Binance being used to funnel money between sanctioned parties, this week it was reported that the Israeli National Bureau for Counter Terror Financing (NBCTF) has previously seized Binance accounts in its efforts to thwart funding for terrorist groups.

Neither authorities in the U.S. nor Israel have yet brought any charges against Binince and the firm has de

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Author: James Morales

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