Binance execs’ texts, documents show plan to avoid U.S. scrutiny – WSJ
(Reuters) – Binance, one of the world’s largest cryptocurrency exchanges, developed a plan to avoid the threat of prosecution by U.S. authorities as it started an American entity in 2019, the Wall Street Journal reported on Sunday.
The U.S. regulators who have signaled that they would crack down on any unregulated offshore crypto player, could bring a lawsuit. “nuclear fall out” Binance and its officers were the focus of this report by the WSJ. They cited a Binance executive’s 2019 warning to his colleagues.
The Wall Street Journal has reviewed the messages and documents for 2018 through 2020. Interviews with ex-employees are also used to create this report.
Binance.US was established in 2017 and Binance.US was created in 2017. The report stated that Binance.US and Binance.US were more connected than companies disclosed. They share staff, finances, and an affiliated entity which bought and sold cryptocurrency.
Binance.com operates mainly in hubs in China, Japan and the United States. However, a fifth its customers are based in America. Binance.US has its headquarters in San Francisco.
Binance developers in China retained the code for Binance. US users’ digital wallets could allow Binance access U.S. customers data, as reported by the WSJ.
According to the report, Binance.US has been under investigation by the Department of Justice and Securities and Exchange Commission since 2020. The reports cite subpoenas and other sources. If U.S. regulators find that Binance controls its U.S. entity they may be able to take control of Binance’s whole business.
Binance, Binance.US and the DOJ didn’t immediately reply to Reuters requests for comment.
Three U.S. Senators have asked Binance.US and Binance.US to provide information on their financial compliance and finances.
Reuters reports that Binance.US was established in 2019 as a de-facto subsidiary, to remove Binance.com from the eyes of U.S regulators.
(Reporting from Akriti Sharma in Bengaluru, Editing By Richard Chang
“From Binance execs’ texts, documents show plan to avoid U.S. scrutiny – WSJ”
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