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The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

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Follow The Distributed

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\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 19, 2024

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

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Type your email here

Follow The Distributed

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\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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August 15, 2024

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

Artificial Intelligence

Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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December 19, 2024

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December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

Artificial Intelligence

Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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ADVERTISEMENT

\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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ADVERTISEMENT

\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

Artificial Intelligence

Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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ADVERTISEMENT

\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

Artificial Intelligence

Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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ADVERTISEMENT

\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\n
One of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

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Follow The Distributed

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ADVERTISEMENT

\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

Subscribe To Our Newsletter

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Follow The Distributed

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\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

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Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

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December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Blockchain

Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules

December 30, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Highly Anticipated Ripple Stablecoin RLUSD Launches On December 17

December 19, 2024

Artificial Intelligence

Top Canadian Media Outlets Sue OpenAI In Copyright Case Potentially Worth Billions

December 5, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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December 5, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 5, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Follow The Distributed

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\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The IRS finalized the regulations on December 27, mandating brokers to report gross proceeds from cryptocurrency transactions. Unlike earlier rules that targeted centralized exchanges, these requirements extend to decentralized platforms and software developers involved in transaction facilitation.<\/p>\n\n\n\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The lawsuit<\/a>, led by the Blockchain Association and Texas Blockchain Council, challenges new broker reporting requirements set to take effect in 2027. These rules expand the definition of brokers to include DeFi platforms, potentially driving innovation offshore and imposing heavy compliance burdens on software developers.<\/p>\n\n\n\n
The IRS finalized the regulations on December 27, mandating brokers to report gross proceeds from cryptocurrency transactions. Unlike earlier rules that targeted centralized exchanges, these requirements extend to decentralized platforms and software developers involved in transaction facilitation.<\/p>\n\n\n\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The U.S. cryptocurrency industry is waging a high-stakes legal battle against the IRS, citing concerns over privacy, innovation, and the future of decentralized finance (DeFi).<\/p>\n\n\n\n
The lawsuit<\/a>, led by the Blockchain Association and Texas Blockchain Council, challenges new broker reporting requirements set to take effect in 2027. These rules expand the definition of brokers to include DeFi platforms, potentially driving innovation offshore and imposing heavy compliance burdens on software developers.<\/p>\n\n\n\n
The IRS finalized the regulations on December 27, mandating brokers to report gross proceeds from cryptocurrency transactions. Unlike earlier rules that targeted centralized exchanges, these requirements extend to decentralized platforms and software developers involved in transaction facilitation.<\/p>\n\n\n\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
IRS recently proposed that brokers report gross proceeds from cryptocurrency transactions.<\/li>\n<\/ul>\n\n\n\n
The U.S. cryptocurrency industry is waging a high-stakes legal battle against the IRS, citing concerns over privacy, innovation, and the future of decentralized finance (DeFi).<\/p>\n\n\n\n
The lawsuit<\/a>, led by the Blockchain Association and Texas Blockchain Council, challenges new broker reporting requirements set to take effect in 2027. These rules expand the definition of brokers to include DeFi platforms, potentially driving innovation offshore and imposing heavy compliance burdens on software developers.<\/p>\n\n\n\n
The IRS finalized the regulations on December 27, mandating brokers to report gross proceeds from cryptocurrency transactions. Unlike earlier rules that targeted centralized exchanges, these requirements extend to decentralized platforms and software developers involved in transaction facilitation.<\/p>\n\n\n\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The lawsuit opposes regulations that expand the definition of brokers to include DeFi platforms.<\/li>\n\n\n\n
IRS recently proposed that brokers report gross proceeds from cryptocurrency transactions.<\/li>\n<\/ul>\n\n\n\n
The U.S. cryptocurrency industry is waging a high-stakes legal battle against the IRS, citing concerns over privacy, innovation, and the future of decentralized finance (DeFi).<\/p>\n\n\n\n
The lawsuit<\/a>, led by the Blockchain Association and Texas Blockchain Council, challenges new broker reporting requirements set to take effect in 2027. These rules expand the definition of brokers to include DeFi platforms, potentially driving innovation offshore and imposing heavy compliance burdens on software developers.<\/p>\n\n\n\n
The IRS finalized the regulations on December 27, mandating brokers to report gross proceeds from cryptocurrency transactions. Unlike earlier rules that targeted centralized exchanges, these requirements extend to decentralized platforms and software developers involved in transaction facilitation.<\/p>\n\n\n\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
The lawsuit opposes regulations that expand the definition of brokers to include DeFi platforms.<\/li>\n\n\n\n
IRS recently proposed that brokers report gross proceeds from cryptocurrency transactions.<\/li>\n<\/ul>\n\n\n\n
The U.S. cryptocurrency industry is waging a high-stakes legal battle against the IRS, citing concerns over privacy, innovation, and the future of decentralized finance (DeFi).<\/p>\n\n\n\n
The lawsuit<\/a>, led by the Blockchain Association and Texas Blockchain Council, challenges new broker reporting requirements set to take effect in 2027. These rules expand the definition of brokers to include DeFi platforms, potentially driving innovation offshore and imposing heavy compliance burdens on software developers.<\/p>\n\n\n\n
The IRS finalized the regulations on December 27, mandating brokers to report gross proceeds from cryptocurrency transactions. Unlike earlier rules that targeted centralized exchanges, these requirements extend to decentralized platforms and software developers involved in transaction facilitation.<\/p>\n\n\n\n
DeFi platforms, which operate without centralized control, now risk being classified as brokers under the IRS's expanded definition. The broader implications are significant. The rules would affect up to 875 brokers and 2.6 million U.S. taxpayers, forcing decentralized platforms to collect and report sensitive transaction data by 2026.<\/p>\n\n\n\n
See Related: <\/em><\/strong>US Taxman Introduces New Crypto Tax Rules For 2025<\/a><\/p>\n\n\n\n
Lawsuit And Blockchain Developers<\/strong><\/p>\n\n\n\n
The lawsuit comes amid heightened scrutiny of blockchain developers globally. Earlier this year, Alex Pertsev, a Tornado Cash developer, was convicted of money laundering for enabling illicit transactions through non-custodial cryptocurrency mixing services. The Blockchain Association points to such cases as evidence of increasing legal pressures on developers who merely create software tools.<\/p>\n\n\n\n
The legal battle also has political undertones. While the Biden administration defends the regulations as a step toward financial transparency, pro-crypto advocates, including former President Donald Trump and some GOP allies, have vowed to roll back such measures.<\/p>\n\n\n\n
The lawsuit signals an escalating conflict between regulators and the crypto industry, with profound implications for privacy, technological advancement, and market competitiveness.<\/p>\n\n\n\n
The Blockchain Association\u2019s lawsuit against the IRS may be the first of many as crypto advocates continue to challenge regulatory overreach. It comes as the industry braces for a protracted legal fight in an outcome that could shape decentralized finance in the U.S.<\/p>\n","post_title":"Blockchain Association Sues IRS Over New Crypto Broker Reporting Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blockchain-association-sues-irs-over-new-crypto-broker-reporting-rules","to_ping":"","pinged":"","post_modified":"2024-12-30 05:10:34","post_modified_gmt":"2024-12-29 18:10:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19992","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18904,"post_author":"1","post_date":"2024-10-02 15:53:27","post_date_gmt":"2024-10-02 05:53:27","post_content":"\n
\n
Zhao pleaded guilty to failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act.<\/li>\n\n\n\n
Despite the severity of the charges, Zhao's custodial sentence was lighter than the initially sought three-year term.<\/li>\n<\/ul>\n\n\n\n
Changpeng \"CZ\" Zhao, the founder of Binance, was released from custody on Friday, Bloomberg<\/em> first reported<\/a>. After spending three months in a California prison and weeks in transitional housing, Zhao's early release, two days ahead of his expected release date, marked the end of a sentence linked to his violations of US financial laws.<\/p>\n\n\n\n
Zhao faced charges in April for failing to establish adequate anti-money laundering safeguards at Binance, specifically the implementation of a comprehensive Know-Your-Customer (KYC) program. He pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison.<\/p>\n\n\n\n
The plea deal included a personal $50 million fine and his resignation as Binance's CEO. Binance itself agreed to pay a $4.3 billion fine to settle related charges with multiple US regulatory bodies. The sentencing marked a major development in the crackdown on cryptocurrency regulation, particularly given the scale of Binance's operation as the largest crypto exchange globally.<\/p>\n\n\n\n
Though custodial sentences for such violations are rare, Zhao's punishment was more lenient than the three-year term initially sought by federal prosecutors.<\/p>\n\n\n\n
See Related: <\/em><\/strong>From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
Early Release For Changpeng Zhao<\/h2>\n\n\n\n
Under US law, prisoners may be released early if their release date falls on a weekend or holiday. Zhao's time in custody began with three months in Lompoc II, a low-security facility located along California's central coast, followed by a move to a halfway house in August.<\/p>\n\n\n\n
Zhao, often referred to by his initials \"CZ,\" is notably one of the wealthiest individuals to have ever been imprisoned in the US, with an estimated net worth of $25.3 billion according to Bloomberg's Billionaires' Index.<\/p>\n\n\n\n
In contrast, other cryptocurrency figures facing similar allegations, such as former BitMEX CEO Arthur Hayes, were only sentenced to probation. Prosecutors had hoped to make an example of Zhao, arguing that Binance fostered an environment conducive to money laundering, terrorist financing, and illicit activities.<\/p>\n\n\n\n
They claimed that Binance facilitated over 100,000 suspicious transactions involving designated terrorist groups, including Hamas, al-Qaeda, and ISIS, and even played a role in supporting child exploitation content.<\/p>\n","post_title":"Binance's Founder Changpeng Zhao Released From US Prison","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-founder-changpeng-zhao-released-from-us-prison","to_ping":"","pinged":"","post_modified":"2024-10-02 15:53:34","post_modified_gmt":"2024-10-02 05:53:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17725,"post_author":"1","post_date":"2024-07-09 21:33:35","post_date_gmt":"2024-07-09 11:33:35","post_content":"\n
\n
The Federal Reserve and California regulators found major deficiencies in Silvergate Bank's anti-money laundering practices.<\/li>\n\n\n\n
Former Chief Financial Officer Antonio Martino has chosen to contest the SEC's allegations, aiming to prove the regulator's overreach in court.<\/li>\n<\/ul>\n\n\n\n
The owner of defunct crypto lender Silvergate Bank has agreed to a $63 million settlement with federal and state regulators over compliance failures, marking the first federal enforcement action against entities involved in 2023's bank collapses, Reuters reported. This resolution highlights significant deficiencies in the bank's anti-money laundering practices and reportedly misleading statements made by its top executives.<\/p>\n\n\n\n
The Federal Reserve and California regulators identified critical deficiencies<\/a> in Silvergate Bank's compliance with anti-money laundering laws. Concurrently, the US Securities and Exchange Commission (SEC) accused the bank and its executives of making misleading statements to investors.<\/p>\n\n\n\n
The firm's former Chief Executive Officer Alan Lane and former Chief Risk Officer Kathleen Fraher settled with the SEC, agreeing to permanent injunctions, five-year officer-and-director bars, and civil penalties amounting to $1 million and $250,000, respectively.<\/p>\n\n\n\n
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n
Executives' Response And Charges<\/h2>\n\n\n\n
Despite the settlement, former Chief Financial Officer Antonio Martino chose to contest the SEC's allegations. The SEC accused Martino of misleading investors about losses from expected securities sales after the collapse of the crypto exchange FTX. Martino's lawyer issued a statement rejecting the SEC's claims and expressing confidence in proving their overreach in court.<\/p>\n\n\n\n
La Jolla-based Silvergate Bank, primarily serving cryptocurrency clients, announced in March 2023 that it would wind down operations following significant losses post-FTX collapse and a broader downturn in the digital asset market. This announcement came amid a wave of bank failures in 2023, which included the collapse of Silicon Valley Bank. Silvergate faced severe liquidity issues, exacerbated by depositors withdrawing over $8 billion, forcing the bank to sell debt securities at a loss.<\/p>\n\n\n\n
Silvergate Capital, while neither admitting nor denying the SEC charges, confirmed that all customer deposits had been repaid. The spokesperson stated that the settlements would facilitate the surrender of Silvergate's bank charter, marking a critical step in the bank's orderly liquidation process.<\/p>\n\n\n\n
Silvergate Capital agreed to pay $20 million to the California Department of Financial Protection and Innovation and $43 million to the Federal Reserve. Additionally, the SEC imposed penalties of $50 million, offset by Silvergate's payments to the Fed and DFPI.<\/p>\n","post_title":"Defunct Crypto Lender Silvergate Settles With Regulators For $63M Over Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defunct-crypto-lender-silvergate-settles-with-regulators-for-63m-over-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-07-09 21:33:41","post_modified_gmt":"2024-07-09 11:33:41","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17725","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17388,"post_author":"1","post_date":"2024-06-21 19:10:59","post_date_gmt":"2024-06-21 09:10:59","post_content":"\n
\n
Despite the dropped tax charges, Gambaryan and Anjarwalla remain involved in a separate money-laundering case.<\/li>\n\n\n\n
Binance maintains that neither of them had decision-making roles within the company and wants them released.<\/li>\n<\/ul>\n\n\n\n
Nigeria's authorities have dropped tax charges against Binance's executives Tigran Gambaryan and Nadeem Anjarwalla, narrowing its focus solely on the crypto exchange itself. However, the two executives are embroiled in a separate money-laundering case amidst escalating health concerns, particularly for Gambaryan.<\/p>\n\n\n\n
According to Coindesk, The Federal Inland Revenue Service (FIRS) of Nigeria has dropped tax charges<\/a> against the two executives and revised related charges. The FIRS has only named Binance, who is represented locally, as the defendant. This decision came after the executives were initially detained in February during an investigation into the exchange.<\/p>\n\n\n\n
Although the tax charges have been dropped, Gambaryan and Anjarwalla are still involved in a money-laundering case brought by the Economic and Financial Crimes Commission. Binance has been attempting to persuade Nigerian authorities that Gambaryan, who is ill, does not hold decision-making power within the company and should be released. Despite these efforts, Gambaryan remains detained in Kuje prison, while Anjarwalla managed to escape shortly after their detention.<\/p>\n\n\n\n
See Related: <\/em><\/strong>Binance Executives Sue Nigerian Government For Detainment<\/a><\/p>\n\n\n\n
Health Concerns<\/h2>\n\n\n\n
Gambaryan's health has reportedly deteriorated significantly since his detention. He collapsed in court on May 23 due to malaria and has since developed pneumonia. Despite a court order for medical treatment, prison authorities delayed taking him to the hospital. His family has voiced concerns over his worsening condition and the lack of timely medical care.<\/p>\n\n\n\n
Tigran Gambaryan's wife, Yuki Gambaryan, has urged the U.S. government to intervene for her husband's immediate release, stressing that his life is at risk. A family spokesperson reiterated that neither Gambaryan nor Anjarwalla had decision-making roles at Binance and should not have been charged or detained in the first place.<\/p>\n\n\n\n
A Binance spokesperson expressed hope that the EFCC would follow the FIRS's lead and drop the charges against Gambaryan, emphasizing the company's commitment to cooperating with Nigerian authorities to resolve the situation. The spokesperson also highlighted the impact of Gambaryan's 110-day detention on his health, citing diagnoses of malaria and pneumonia.<\/p>\n\n\n\n
The next hearing for the money-laundering case is scheduled for June 19, where an application for enforcing fundamental rights will be addressed. The trial is set to resume on June 20. Binance continues to advocate for Gambaryan's release, emphasizing his deteriorating health and the need for urgent medical attention.<\/p>\n","post_title":"Binance's Executives Cleared Of Tax Charges In Nigeria","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-executives-cleared-of-tax-charges-in-nigeria","to_ping":"","pinged":"","post_modified":"2024-06-23 02:42:27","post_modified_gmt":"2024-06-22 16:42:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17388","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14680,"post_author":"1","post_date":"2023-12-18 02:43:53","post_date_gmt":"2023-12-17 15:43:53","post_content":"\n
\n
The company has highlighted its commitment to combat illegal crypto usage.<\/li>\n\n\n\n
One of the plans is the implementation of proper KYC and AML procedures.<\/li>\n<\/ul>\n\n\n\n
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether's stance against illicit crypto use.<\/p>\n\n\n\n
Paolo Ardoino, the CEO of Tether, said: \"Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether's close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.\"<\/em><\/p>\n\n\n\n
Money Laundering And Tether<\/h2>\n\n\n\nOne of the initiatives outlined, according to the statement shared by the company<\/a> on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. <\/p>\n\n\n\n
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control's Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Cryptocurrency Statistics And Insights (2022)<\/a><\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/Tether_to\/status\/1735786734380626202\n<\/div><\/figure>\n\n\n\n
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.<\/p>\n\n\n\n
Mounting Regulatory Scrutiny<\/h2>\n\n\n\n
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request<\/a>, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.<\/p>\n\n\n\n
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether's reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether's reserves.<\/p>\n\n\n\n
Tether's previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.<\/p>\n","post_title":"Tether Unveils Detailed Anti-Illicit Crypto Plans In Letters To US Congress","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tether-unveils-detailed-anti-illicit-crypto-plans-in-letters-to-us-congress","to_ping":"","pinged":"","post_modified":"2023-12-18 02:43:58","post_modified_gmt":"2023-12-17 15:43:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14680","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14477,"post_author":"15","post_date":"2023-11-25 19:58:56","post_date_gmt":"2023-11-25 08:58:56","post_content":"\n
The recent guilty plea of Binance and its CEO for money laundering charges has raised questions about the company's massive movement of stablecoins before the settlement.<\/p>\n\n\n\n
A $3.9 billion transaction <\/a>in Tether (USDT) on November 9 closely matches Binance's $4.3 billion penalty in the settlement. Most of these funds shifted from one Binance cold wallet (Binance-Cold 2<\/a>) to another (Binance 3)<\/a>. Currently, Binance-Cold 2 holds $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins like Decentralized USD (USDD), USDC, and TrueUSD (TUSD).<\/p>\n\n\n\n
Meanwhile, the destination wallet now contains $3.2 billion, primarily in Tether's USDT stablecoin. Binance's cold wallets are known to hold a significant portion of the company's funds.<\/p>\n\n\n\n
See Related:<\/em><\/strong> FTX Co-Founder Pleads Guilty To Fraud Charges<\/a><\/p>\n\n\n\n
It remains uncertain if these funds will be used to cover the U.S. government's fine or converted into U.S. dollars or another fiat currency. Binance has not responded. Tether, with 88.3 billion USDT tokens in circulation, is the largest stablecoin in the industry, accounting for 6% of the global crypto market capitalization.<\/p>\n\n\n\n
Its closest competitor, USDC, has a $24 billion market cap. However, Tether has faced regulatory scrutiny for years. Binance CEO's guilty plea for money laundering has raised concerns about the stablecoins.<\/p>\n\n\n\n
Total Fine Imposed On Binance and CEO<\/h2>\n\n\n\n
The USDT transfer occurred just before Binance<\/a> and CEO Changpeng Zhao agreed to pay $1.8 billion in criminal fines, with an additional $2.5 billion in forfeitures, including $1.6 billion for settlements with regulatory bodies like the CFTC, FinCEN, and OFAC.<\/p>\n\n\n\n
Zhao stepped down as CEO as part of the settlement, concluding lengthy investigations into Binance's regulatory compliance and anti-money laundering controls by U.S. authorities.<\/p>\n","post_title":"Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-3-9-billion-usdt-transfer-sparks-speculation-amidst-ceos-guilty-plea","to_ping":"","pinged":"","post_modified":"2023-11-25 19:59:03","post_modified_gmt":"2023-11-25 08:59:03","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14477","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14430,"post_author":"21","post_date":"2023-11-22 03:05:38","post_date_gmt":"2023-11-21 16:05:38","post_content":"\n
\n
The Justice Department seeks a record $4 billion to settle a case with Binance.<\/li>\n\n\n\n
Binance CEO Changpeng \"CZ\" could face criminal charges.<\/li>\n<\/ul>\n\n\n\n
Binance is reportedly<\/a> discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.\u00a0<\/p>\n\n\n\n
Binance, the world's largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud. <\/p>\n\n\n\n
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused<\/a> the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng \"CZ\" Zhao could face criminal charges.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Russia Is Considering Digital Ruble Settlements With China<\/a><\/p>\n\n\n\n
Largest Settlement In Crypto History<\/h2>\n\n\n\n
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever. <\/p>\n\n\n\n
Meanwhile, the development could be positive for Binance token<\/a> (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.\u00a0\u00a0<\/p>\n\n\n\n
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,<\/p>\n\n\n\n
\u201cIt was an overhang in the industry. And while $4 billion is not an insignificant number, it\u2019s probably a small price for Binance to pay to move forward from this.\u201d<\/em><\/p>\n\n\n\n
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance's allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.<\/p>\n","post_title":"Binance Could Pay A Record $4B To Settle Case With The U.S. Justice Department","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-could-pay-a-record-4b-to-settle-case-with-the-u-s-justice-department","to_ping":"","pinged":"","post_modified":"2023-11-22 03:10:01","post_modified_gmt":"2023-11-21 16:10:01","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14430","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":7869,"post_author":"10","post_date":"2022-10-27 17:29:36","post_date_gmt":"2022-10-27 06:29:36","post_content":"\n
South Korea's Financial Service Commission will keep an eye on cryptocurrency \"whales\" with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.<\/p>\n\n\n\n
The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.<\/li><\/ul>\n\n\n\n
According to reports<\/a> by local media, the FSC stated that a greater percentage of digital assets and stablecoins<\/a> is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.<\/li><\/ul>\n\n\n\n
The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.<\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>Binance Introduces New Law Enforcement Programs To Detect Crypto Crimes<\/a><\/p>\n\n\n\n
Crypto Whales Facing Extensive AML Rules<\/h2>\n\n\n\n
South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath<\/a> of the Terra ecosystem's collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.<\/span><\/li><\/ul>\n\n\n\n
The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.<\/li><\/ul>\n\n\n\n
The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.<\/span><\/li><\/ul>\n\n\n\n
See Related: <\/em><\/strong>South Korean Government To Invest $187M Into The Metaverse<\/a><\/p>\n","post_title":"South Korean Watchdog Goes After Crypto Whales To Enforce AML Compliance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-watchdog-goes-after-crypto-whales-to-enforceaml-compliance","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/the-terrable-fate-of-ust-and-its-sister-coin-luna\/","post_modified":"2022-10-27 17:31:06","post_modified_gmt":"2022-10-27 06:31:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=7869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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