What is the controversy with Binance? (2024)

What is the controversy with Binance?

The CFTC brought civil proceedings against Binance in March 2023 for failing to put in place an anti-money laundering program that would have identified and stopped dirty money transactions such as the financing of terrorism and illicit drug sales.

Why is Binance in trouble?

The SEC has accused Binance, Zhao and the exchange's U.S. arm of artificially inflating its trading volumes, diverting customer funds, failing to restrict U.S. customers from its platform and misleading investors about its market surveillance controls.

Why is Binance not allowed in the US?

The suspension reportedly came a week after Binance's founder and former CEO Zhao, also known as CZ, pleaded guilty to charges of violating U.S Anti-Money Laundering policies on Nov. 21, 2023. In December 2023, a U.S. federal court subsequently accepted Zhao's guilty plea to one count of Bank Secrecy Act violations.

What are the accusations on Binance?

Binance is accused of having authorized the trading of certain cryptocurrencies without them having been registered as securities, a term designating transferable securities in English. ✅In reality, two requests were sent, one defending Changpeng Zhao and Binance, the other defending the US branch of Binance.

Why did they ban Binance?

Authorities said Binance manipulated exchange rates through speculation and rate-fixing, leading to the devaluation of the naira.

What happens if Binance shuts down?

If Binance were to cease operations, it would create a supply shock and a panic sell-off in the market. The prices of bitcoin and other cryptocurrencies would likely plummet, as traders and investors scramble to liquidate their positions and withdraw their funds from the exchange.

Why can't i get my money from Binance?

Users cannot withdraw USD without first converting it to stablecoins or another digital asset.

Is Binance money laundering?

Binance and Zhao admitted to violating anti-money laundering laws, as well as to unlicensed money transmitting and sanctions violations in a plea agreement with the Justice Department in November.

What happens if I use Binance in the US?

Binance US is legal across all the states, excluding New York, Texas, Louisiana, Hawaii, Idaho, and Vermont. As for the international version of Binance, it's unavailable in the US due to the local regulations mentioned above.

What states in usa is Binance restricted?

Availability to all U.S. Residents

Binance.US is available to most residents of the United States. However, the platform is still restricted to residents in New York, Hawaii, Texas and Vermont. To truly serve U.S.-based residents to the best of its abilities, Binance.US would ideally be available in all 50 states.

Is my money safe in Binance?

Is Binance Safe? The bottom line is that Binance is a very safe crypto exchange (with some caveats). It keeps the vast majority of its crypto in “cold wallets” that are not connected to the internet. This limits losses in case of a hack and makes it unlikely that an attack will cause Binance to become insolvent.

Is Binance safe now?

Some factors that make Binance a trustworthy exchange include its strong security measures, its commitment to regulatory compliance, and its track record of addressing user issues promptly. Yes, Binance Exchange is considered a safe and reputable platform in the cryptocurrency industry.

Why is Binance being investigated?

'” Due in part to Binance's failure to implement an effective AML program, illicit actors used Binance's exchange in various ways, including conducting transactions for mixing services that obfuscated the source and ownership of cryptocurrency; transferring illicit proceeds from ransomware variants; and moving proceeds ...

Who owns Binance?

Changpeng Zhao, known as "CZ," founded Binance, which rapidly grew to be the largest cryptocurrency exchange in the world by daily trading volume. With a net worth estimated at $39.6 billion as of March 2024, Zhao's story reflects the fast-paced and unpredictable world of cryptocurrency.

What is the news about Binance?

Binance Ranks Ninth Place in Hurun's 2024 Top Ten Global Unicorns Ranking. Binance has taken the ninth slot in the 2024 Hurun Global Top Ten Unicorns Ranking. It's the only blockchain company to feature in the top ten, signifying the growing recognition of the cryptocurrency industry among global businesses.

What is the issue between Binance and Nigeria?

Binance ended trading with the Nigerian naira currency on its platform in early March after authorities accused it of being used for money laundering and “terrorism” financing. Authorities have not provided evidence for the accusations publicly.

Is Binance still in business?

Today, Binance is the world's leading blockchain ecosystem, with a product suite that includes the largest digital asset exchange.

What happens to trust wallet if Binance goes out of business?

If Binance Goes Bankrupt Will Trust Wallet Be Safe? CZ's Response: The answer to both questions is yes. Let's say Binance completely disappears for whatever reason or we shut it down. Trust wallet is completely safe.

How do I get my money out of Binance?

Can I withdraw USD from Binance to my bank account?

Withdrawing from Binance to your bank account can be done in just a few simple steps. While Binance doesn't offer direct fiat bank withdrawals in USD and GBP at the moment, its users can still withdraw other fiat currencies such as EUR. This can be done via bank account transfers or bank card withdrawals.

How do I get my USD out of Binance?

Is Binance under federal investigation?

Binance has been under scrutiny for years, with federal investigations dating back to 2018. However, on Nov. 21, 2023, the U.S. Department of Justice (DOJ) officially announced criminal charges against Binance and CEO Changpeng Zhao.

Is Binance in legal trouble?

Binance's new CEO Richard Teng said the company has moved past cultural issues after the company was hit with a $4.3 billion fine to settle charges from the U.S. Justice Department. The DOJ had alleged Binance practised a move first, ask forgiveness later approach. Teng on Tuesday acknowledged the concerns.

What happens to Binance now?

The Aftermath and Future of Binance

Binance's future now rests with Richard Teng, a long-time executive who will take over as CEO. His immediate challenge will be to reassure users of Binance's financial strength and safety while navigating increased regulatory scrutiny.

Is Binance safe for US citizens?

Can Binance be trusted? Binance is generally considered one of the most secure cryptocurrency exchanges. It has implemented various security measures, including two-factor authentication, real-time monitoring, and encryption. However, the platform has a history of security breaches.