After the CFTC agency, the DOJ also jumped against the Binance crypto exchange over the violation of US sanctions.
In Q1 2022, the Russian military started invasions against Ukraine over geopolitical conflicts. Between Feb & March of the last year, America implemented more than 2,500 sanctions in response to Russia’s war of choice. As a part of the sanctions, many big companies started to go outside Russia & also stopped providing services to Russian citizens.
Binance exchange also followed the US sanctions against Russia & stopped providing crypto services to certain sanctioned crypto addresses linked with Russian officials and also stopped accepting payments from Russian-issued cards.
On 6 May 2023, Bloomberg reported that the U.S. Department of Justice (DOJ) started an investigation against the Binance crypto exchange over the potential violation of its sanctions.
The DOJ will investigate Binance from two sides, another side Doj’s criminal division will investigate Binance services.
The report noted that the DOJ believes that the Binance exchange was used by Russia to transfer payments, against sanctions, or someone in the Binance exchange helped Russia to bypass US sanctions.
It is worth it to note that Binance Exchange doesn’t provide services under the jurisdiction of the US but is still facing such investigation. It is because the services of this exchange are available in the US via an independent subsidiary.
So far no one investigation found anything suspicious with the Binance services but here it will be too early to give judgment in favor of the Binance exchange directly.
In response to these DOJ investigation reports, a Binance spokesperson confirmed that Binance policy imposes a zero-tolerance approach to double registrations, anonymous identities, and obscure sources of money.
On 5 May, Binance CEO Changpeng Zhao (CZ) shared the news that explains how Binance’s transparent services are helping enforcement agencies to catch perpetrators of ‘child abuse, drug trafficking, public corruption’.