Bloomberg: US Department of Justice Launches Investigation into Binance for Violating Russian Sanctions, Binance: Fully Compliant with Regulations

At the end of April, Russian users revealed that Binance had secretly lifted several service restrictions for Russian users. On May 5th, Bloomberg cited sources saying that the U.S. Department of Justice is investigating whether Binance has violated sanctions related to Russia and other matters.

Justice Department Investigates Binance for Alleged Violation of Russian Sanctions

According to a report by Bloomberg, five sources have claimed that the Justice Department is investigating Binance Holdings Ltd. to determine if the company illegally provided services to Russian users to transfer funds in order to circumvent U.S. sanctions.

One source stated that the investigation by the Justice Department has not been publicly reported and is currently ongoing alongside the criminal division.

Did Binance Violate Iranian Sanctions?

Another source revealed that Binance has also faced accusations of aiding in evading Iranian sanctions, and discussions with the U.S. Justice Department regarding this issue are ongoing.

Binance Statement: Full Compliance with Regulations

In a statement, Binance emphasized that the platform fully complies with all U.S. and international financial sanctions. They stated:

In 2021, Binance initiated a comprehensive plan to reform its corporate governance structure, including the recruitment of a top-tier, experienced executive team. This has fundamentally changed the operational model of Binance globally, and the platform's KYC mechanism is comparable to any agreement in the traditional banking system, adopting a zero-tolerance approach to activities such as multiple registrations, anonymity, and unclear funds.

The Justice Department declined to comment on this matter.

Previous reports indicated that Russian users revealed through the media that Binance seemed to have quietly removed several regulations announced in March 2022 regarding Russia. Users in Russia are now able to deposit funds into Binance using locally issued Mastercard and Visa cards, with Russian rubles, euros, pounds, and other legal currencies.

However, official EU sanctions against Russia remain in place.

Alleged Evasion of Sanctions on Russia: Binance Ignores EU Sanctions, Secretly Lifts Restrictions on Russian Users?