Binance execs' texts, documents show plan to avoid US scrutiny - WSJ

03/06 02:05

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. Any lawsuit from U.S. regulators, who had signaled a coming crackdown on unregulated offshore crypto players, would be like "nuclear fall out" for Binance's business and its officers, the WSJ said, citing a Binance executive's warning to colleagues in a 2019 private chat. It noted that Binance.com operated mainly from hubs in China and Japan, yet a fifth of its customers were based in the United States. Binance. US is based in San Francisco. Binance developers in China maintained the software code that supported Binance. US users' digital wallets, potentially giving Binance access to U.S. customer data, the WSJ reported. In an emailed statement to Reuters, a Binance spokesperson said, "we have already acknowledged that we did not have adequate compliance and controls in place during those early years... we are a very different company today when it comes to compliance." Binance is under heightened scrutiny as three U.S. senators this week asked the giant cryptocurrency exchange and Binance. US for information about their regulatory compliance and finances.
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