Binance Accused by US for Permitting Transactions Linked to Terrorism

• Binance Crypto Exchange Linked to Terror Groups: US Government Claims
• CEO Changpeng Zhao Resigns Following Investigation
• Binance's Permission of Terrorist Transactions
• Organizational Changes at Binance
• Criminal Charges Against Binance

Binance Crypto Exchange Linked to Terror Groups: US Government Claims

The US government has allegedly linked Binance, one of the largest cryptocurrency exchanges by trading volume, to facilitating transactions for terror organizations such as ISIS, Al Qaeda, and Hamas. It has been suggested that these illicit funds were implicated in the hefty $4.3 billion settlement agreement unveiled today. Further reports indicate that the head of compliance at Binance had previously admitted to the platform's role in aiding Hamas with financial resources in 2019.

CEO Changpeng Zhao Resigns Following Investigation

The culmination of a prolonged investigation into the exchange has resulted in the stepping down of Binance's CEO, Changpeng Zhao. Earlier today, the industry keenly awaited the outcomes of the thorough probe into Binance's activities by the US Justice Department. The investigation, concerned with the potential criminal undertakings of the exchange, concluded with significant settlements, executive resignations, and alarming discoveries.

Binance's Permission of Terrorist Transactions

The US government asserts that Binance permitted transactions on its platform by ISIS, Al Qaeda, and Hamas. Moreover, reports reveal that in 2019, Justin Lim, who was then the head of compliance at the company, conceded to this activity. Lim had admitted that Hamas, in particular, was known to transmit funds in small amounts.

Organizational Changes at Binance

The revelations have brought about monumental changes in the company's structure. Changpeng Zhao, the long-standing CEO, has relinquished his position. In addition, Zhao has admitted to breaching criminal anti-money laundering regulations. Despite being granted the ability to retain majority ownership, he is now precluded from occupying any executive roles within the organization. On top of this, the US has levelled criminal charges against the cryptocurrency exchange.

Criminal Charges Against Binance

The charges against the crypto exchange include conspiracy, operation of an unlicensed money-transmitting venture, and breach of the International Emergency Economic Powers Act. The settlement was made public today, with the US Attorney General, Merrick Garland, providing a statement about the development during a press conference.

Edited by Jonathan Stoker