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.
On September 14, Fisco (owner of Zaif) filed a 33-page lawsuit in the Federal Court for the Northern District of California, in which it indicated that Binance’s “weak” KYC requirements allowed cybercriminals to exchange funds stolen from Zaif for another cryptocurrency and fiat.
Best CryptoCurrency Exchange Sites To Buy/Sell All CryptoCurrency
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 platform protocols, they created many new accounts and sent no more than 2 bitcoins to each of them.
Fisco also points out that shortly after the hack, Zaif representatives approached Binance with a request to freeze operations and accounts associated with the stolen assets, but the exchange did not do so on time, either intentionally or unintentionally.
Prosecutor Demands Trial by Jury, Payment of $ 9.4 Million with Interest Since the Break-In and Additional Compensation for Time and Money Spent to Find Stolen Property
Recall that a few weeks ago, due to suspicions of market fraud, the police arrested the leadership of the crypto exchange Coinbit.