Lawsuit Against Binance: Used To Launder Bitcoin?


A group of cryptocurrency users filed a new lawsuit against Binance. Plaintiff; He claims that Binance users are using the exchange to launder Bitcoin and that is Binance’s responsibility.

A cryptocurrency exchange in Japan called Zaif was hacked in 2018 and $ 60 million worth of cryptocurrency was stolen from the exchange. The owners of this exchange, called Zaif, claim that some of these crypto coins stolen in 2018 were laundered through the Bitcoin exchange Binance.

They Laundered $ 9 Million

Zaif; After being hacked, it entered the body of a different crypto currency exchange called Fisco. According to Cointelegraph’s report, Fisco lawyers realized that some of the crypto coins stolen from Zaif were sent to Binance as a result of their historical research.

Fisco executives claim that 1,457 (one thousand four hundred and fifty-seven) Bitcoins (BTC) stolen from Zaif were laundered through Binance. Plaintiff; He accuses Binance of not making sufficiently detailed inquiries into exchange users and transactions. Stating that Binance was too flexible about KYC, the plaintiffs claimed that Binance was also guilty in this case.

Where will the case be heard?

He applied to the Northern California District Attorney’s Office to sue Fisco Binance, but there is a problem. Binance is not headquartered in Northern California. On top of that, the exact location of Binance’s headquarters is unknown. This makes it very difficult to file a lawsuit against Binance.

Fisco executives believe the Northern California District Attorney has this power. The authorities offer several different arguments for this. We can list them as follows:

Binance; It uses Amazon Web Services, which means the company’s servers are based in Northern California.

It is not known exactly what company Binance is collaborating with for cold storage. However, it is known that Swipe, which is affiliated to Binance, works with Coinbase and BitGo and the headquarters of these companies are in California.

Binance occasionally posts job postings for people who can work in San Francisco. The Cointelegraph team reminds that these people do not work directly for Binance, but for Trust Wallet, which is affiliated with Binance.

It is unknown whether authorities in Northern California will accept all these arguments and launch an investigation against Binance.


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