US Justice Department scrutinises Binance compliance with 2023 settlement deal
AI
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Department → scrutinise → deal
The United States Department of Justice (DOJ) is scrutinising whether Binance Holdings breached a landmark settlement with the US government, as authorities probe activity on the platform for potential Iran sanctions violations.
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authorities → scrutinise → violations
Tysen Duva, head of DOJ’s criminal division, said in an interview this week that officials were reviewing Binance’s compliance with its 2023 agreement.
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officials → say → agreement
Duva declined to discuss specifics and did not say that Binance was in violation of the settlement, under which the company agreed to a US$4.3 billion (S$5.5 billion) penalty, pleaded guilty to violating banking rules and accepted increased compliance controls.
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company → decline → controls
In September, the US Attorney’s Office in Manhattan, which is leading the probe and working with the criminal division in Washington, sought forfeiture of US$61 million that it said was generated from Iranian black-market oil sales and laundered through Binance.
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it → lead → Binance
Federal prosecutors have been investigating whether the operator of the world’s biggest crypto exchange committed violations of US sanctions on Iran by not stopping certain trading on its platform, Bloomberg has reported.
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Bloomberg → investigate → platform
“There is an ongoing investigation there that we are involved with,” Duva said in the interview.
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Duva → be → interview
“But beyond that, we’re not going to get into specifics about exactly what the status of the facts are, how it’s developing.”
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it → go → facts
The DOJ said it does not comment on ongoing investigations in response to follow-up questions.
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it → say → questions
Neither the company nor its employees have been accused of wrongdoing and probes can end without charges or lawsuits being filed.
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charges → accuse → wrongdoing
“We are continually working to enhance our controls, and we are fully committed to cooperating with law enforcement,” Binance said in a statement.
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Binance → work → statement
Self reporting
Duva also praised Binance and other digital asset companies for helping the US thwart cyber scams and frauds, especially those committed by transnational criminal organisations.
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US → praise → organisations
He has been encouraging companies to come forward and self report, favouring settlements over what could become costly prosecutions.
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what → encourage → settlements
“I want to focus really on the positive part of the relationship that we’re trying to build with the crypto companies and the tech companies,” Duva said.
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Duva → want → companies
“The early returns have been great with social media, with crypto exchanges, and we’re very excited to really press that and continue this.
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we → ’re → this
More broadly, DOJ is urging companies to self report possible fraud, favouring settlements with companies that proactively disclose potential violations over what could become costly and time-consuming prosecutions, Duva said.
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Duva → urge → violations
Binance is required under the 2023 settlement to report to the government any evidence or allegations of misconduct related to federal laws governing money laundering, banking transactions and sanctions violations.
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Binance → require → laundering
If Binance is found to have breached the deal, the company could be subject to prosecution for the criminal activity that was resolved under the settlement, potentially facing revived charges and billions of dollars in additional fines.
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that → find → fines
Since the 2023 settlement, Binance has sought to emphasise its cooperation with law enforcement and regulators.
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Binance → seek → enforcement
The company said in a blog post in February that overall, more than 1,500 people, or about 25% of its global headcount, worked on compliance.
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people → say → compliance
Binance’s former chief executive Zhao Changpeng pleaded guilty to failing to maintain an effective anti-money laundering program and ended up serving four months in prison.
Zhao, also known by his initials, CZ, was pardoned by US President Donald Trump in October and has been travelling the world promoting adoption of cryptocurrency in places ranging from Dubai to Pakistan.
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Zhao → plead → Pakistan
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