As per the insider, the leading crypto exchange Binance prepared a plan to dodge the regulatory scrutiny and threat from U.S. prosecutions.
While assessing Binance’s employee’s private chat and documents from 2018 to 2020, the popular news magazine observed a fear about possible regulatory action. They were calling any lawsuit from U.S. regulators a “nuclear fall out” for Binance’s business and its officers.
The news magazine reported that Binance and Binance U.S. holds more intertwined than their claims in the context of staff and finances. Also, They both share the same affiliated entity that transacts cryptocurrencies.
The report also allegedly claims that Binance U.S. is possibly sharing customers’ digital wallet data with Binance developer China. Currently, in the world of geopolitics, China is the toughest competitor of the U.S., and if reports are true, it would be the biggest threat to U.S.’s national security.
However, U.S. regulatory authorities such as the Department of Justice and the Securities and Exchange Commission have been continuously assessing Binance’s association with Binance U.S. If regulators find concrete evidence about Binance’s total control over Binance U.S., it may put them in trouble. In the worst scenario, U.S. prosecutors can throw the exchange out of the country.
Binance’s spokesperson admitted to another news agency that “we have already acknowledged that we did not have adequate compliance and controls in place during those early years,” he added, “we are a very different company today when it comes to compliance.”
Last week, three Bipartisan U.S. senators, Elizabeth Warren (D. Mass.), Chairs Van Hollen (D., MD.), and Roger Marshall (R., Kam), called Binance a “Hotbed” of all illegal activities such as money laundering.
