The US gov't will monitor Binance for years — who's right for the job?
When Binance and its founder CZ pleaded guilty to a variety of crimes in Seattle last month, they agreed to allow the US government to appoint a monitor to surveil its business internally for three years . Bureaus of the Treasury will retain access to books, records, and systems of Binance for an additional two years . Binance’s lax anti-money laundering (AML), know your customer (KYC), and countering the financing of terrorism (CFT) procedures were particularly concerning. In the past, Binance and CZ have admitted that they committed crimes and agreed to disgorge billions in ill-gotten gains. FinCEN, for example, alleged that Binance failed to report more than 100,000 suspicious transactions. Binance also admitted to helping sanctioned parties transact on its platform. Beyond Binance ’s record-setting $4.3 billion penalty – the largest in the history of the US Treasury – the most punishing part of Binance ’s settlement is its upcoming monitor ship. Many speculate that Bina...