The world’s largest cryptocurrency exchange by trading volume, Binance, is under investigation by a major federal body of the US government.

The Department of Justice has opened an investigation to determine whether Binance allowed Russian clients to access its exchange platform and move money in violation of US sanctions related to the Russian invasion of Ukraine.

The DoJ’s national security division is conducting the investigation to determine whether the company or its executives violated economic sanctions on Russia. The investigation comes amid regulatory pressure Binance has been facing in a number of countries, including Brazil, the United Kingdom, Japan, and Singapore.

Additionally, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance alleging that it knowingly offered unregistered crypto derivatives products to US clients, in violation of federal law.

Binance accounts have also reportedly been seized in Israel for allegedly being linked to terrorist groups such as the Islamic State. Binance has affirmed that it is in full compliance with all US and international financial sanctions and has implemented know-your-customer protocols and a zero-tolerance policy for double registrations, anonymous identities and obscure sources of money.

K. Tovar

Source: Diariobitcoin

(Reference image source: Tingey Injury Law Firm, Unsplash)

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La entrada US Justice investigates Binance for possible sanctions violation related to russian invasion apareció primero en Bitfinance.

The Office of the Inspector General (OIG) recently conducted an audit on how the United States Marshals Service (USMS) safeguards seized cryptocurrencies, emphasizing the importance of improving ways.

Although the safeguarding by the USMS is being carried out correctly, there is a risk in the way the inventory is made due to the inability of the existing system (Consolidated Asset Tracking System).

According to data presented by the OIG, in 2021 there were about 200 seizures of DOJ cryptocurrencies, which served as examples for the investigation for the challenges presented to the Marshals Service.

“Current USMS seized cryptocurrency management policies are inadequate, non-existent, or in some cases provide conflicting guidance related to asset storage, quantification, valuation, and disposal,” part of the audit reads.

Knowing the intention of the USMS to outsource the management of seized cryptocurrencies, the OIG of the Department of Justice established several recommendations to help improve their management, beginning with the implementation of an asset management system “that records the history edits to prevent fraudulent alteration of inventory records.

K. Tovar

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Source: Cointelegraph

La entrada Cryptocurrencies seized in the US may not be safe apareció primero en Bitfinance.