September 28, 2020

Binance Sued For Aid In Laundering $ 9.4 Million

Binance Sued For Aid In Laundering $ 9.4 Million

The Japanese crypto exchange Fisco has accused Binance of facilitating the laundering of $ 9.4 million in bitcoins stolen from the Zaif exchange in 2018.

September 14 Fisco (owned by Zaif)filed a 33-page lawsuit in the Federal Court for the Northern District of California, in which it pointed out that Binance's "weak" KYC requirements allowed cybercriminals to exchange funds stolen from Zaif for another cryptocurrency and fiat.

According to the prosecutor, since 2018, thieves have been able to launder 1,451.7 BTC in this way, the cost of which at the exchange rate at the time of the theft was about $ 9.4 million, and today - more than $ 15 million. To bypass the KYC and AML protocols of the platform, they created many new accounts and sent no more than 2 bitcoins to each of them.

Fisco also points out that shortly afterhacking, Zaif representatives approached Binance with a request to freeze operations and accounts associated with the stolen assets, but the exchange did not do it on time, either intentionally or unintentionally.

The prosecutor is demanding a jury trial, payment of $ 9.4 million with interest from the time of the break-in and additional compensation for the time and money spent searching for the stolen property.

Recall that a few weeks ago, due to suspicions of market fraud, the police arrested the leadership of the crypto exchange Coinbit.