Home - News - Binance Leaked Texts Reveal Plans to Evade U.S. Law Enforcement-What’s Going On?

James Carter

March 6, 2023

Binance Leaked Texts Reveal Plans to Evade U.S. Law Enforcement-What’s Going On?

Binance and its counterpart, which is located in the United States, Binance. The U.S., which was presented as separate entities, is said to have been more closely connected than what was previously disclosed, allegedly entangling personnel, technical teams, and finances. This was allegedly the case despite the fact that they were presented as separate entities.

Binance and Binance.US, despite their assertion that they were completely separate entities, had shared personnel and finances, as well as a related organization that engaged in the buying and selling of cryptocurrencies, according to a report that was published by The Wall Street Journal (WSJ). This information was revealed by internal documents and employee messages that were discovered by the company.

The article also asserted that in order to avoid being regulated, Binance deliberately established its platform in the United States. It is believed that this decision was made after U.S. authorities issued a warning about an impending onslaught on unregulated offshore crypto players. At the time, approximately twenty percent of Binance’s customers were located in the United States.

According to the report, “Binance set out on a strategy to neutralize U.S. authorities because it was worried about the possibility of being prosecuted.” “The strategy concentrated on building a bare-bones American platform called Binance.US,” which would license Binance’s technology and brand but would otherwise appear to be wholly independent of Binance.com.

Additionally, the report included texts that were exchanged in 2019 between employees of the two businesses that demonstrated their close collaboration. For example, in September 2019, a member of the Binance team in Shanghai activated trading for the U.S. platform just a few minutes before the platform was scheduled to go live. This prompted the following conversation in a Binance discussion group on the messaging app Telegram:

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Ninj0r (a software developer for Binance): “Why did business start? It’s not yet time!!! Who was the first to trade? We had set the timers for trading? Who was the first to trade?” After that, I got more messages, including an urgent one from Ninj0r: “someone started TRADING EARLY. What happened? At 8:56:09.822, someone started trading on their own. Who? Why?” Binance’s CEO Changpeng Zhao finally said, “A guy in Shanghai made a mistake.”

Then came subsequent messages, among which was an additional frantic one from Ninj0r, which read, “someone started TRADING EARLY. Who is responsible? Trading was directly initiated by someone at 8:56:09.822 UTC. Who? Why?” Binance’s Chief Executive Officer, Changpeng Zhao, eventually stated that “a man here in Shanghai, mistake operation.”

According to the messages, developers in Shanghai were responsible for maintaining critical software functions at Binance.US at an earlier stage. According to the WSJ, which cited a person who was familiar with the arrangements, the contracts that the Shanghai developers had signed were with Binance and not with the U.S. platform.

The report also disclosed that in 2018, members of the Binance team made an approach to Gary Gensler, who was serving as the chair of the Commodity Futures Trading Commission at the time and who is now serving in the same capacity at the Securities and Exchange Commission. At the time, one of Binance’s employees shared with their coworkers the information that Gensler would “probably be back in a regulators position if Democrats win the 2020 election.” Binance and Binance are synonymous. Requests for comments from the U.S. were not immediately met with a response.

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Binance Leaked Texts Reveal Plans to Evade U.S. Law Enforcement

Binance Faces Increasing Scrutiny in the US

Binance and its U.S. partner Binance.US were asked by Senators Elizabeth Warren (D-Massachusetts), Chris Van Hollen (D-Maryland), and Roger Marshall (R-Kansas) to provide detailed information regarding their business operations last week. This request came in the wake of allegations that the companies engaged in illegal practices. In a message that was sent to C.Z. as well as Binance.

The senators told US CEO Brian Shroder that the exchange and its related entities had “on purpose” avoided regulators, helped criminals and people trying to get around sanctions get their hands on assets, and kept basic financial information from its customers and the public. The senators also said that the exchange made it easier for criminals and people who break sanctions to get their hands on assets.

It is vital to note that the Department of Justice (DOJ) in the United States has been conducting an investigation into Binance since 2018. According to reports, the investigation is primarily centered on a conspiracy to launder money, the transmission of money without a license, and violations of criminal sanctions.

In a separate development, authorities in the United States have tightened their grip on the Binance-linked BUSD stablecoin. Paxos, a cryptocurrency company that issues Binance’s stablecoin Binance USD (BUSD), was ordered to cease minting BUSD tokens by the New York Department of Financial Services (DFS) at the end of the previous month.