Binance Sued For Aid In Laundering $ 9.4 Million

Japanese cryptocurrency exchange Fisco accuses Binance of facilitating laundering of $ 9.4 million in bitcoins stolen from Zaif exchange in 2018.

Binance Sued For Aid In Laundering $ 9.4 Million

On September 14, Fisco (owner of Zaif) filed a 33-page lawsuit with the Federal Court for the Northern District of California, which indicated that «weak» Binance’s KYC requirements allowed cybercriminals to exchange funds stolen from Zaif for another cryptocurrency and fiat.

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 protocols of the platform, 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 specifically or unintentionally do so in time..

Binance sued for assistance in laundering $ 9.4 million

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.

text: Ivan Malichenko, photo: Shutterstock

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