According to an investigation, the world's largest exchange could be in trouble with the US government due to it serving Iranians despite terrorism sanctions.
The company that invested $200 million into Forbes is accused of violating American sanctions against financial dealings with Iran-based customers and still allowing Iranian traders to use the service.
When the US reimposed terrorism sanctions on Iran after a three-year grace period following the Iran Nuclear Deal, Binance told Iranian traders that they had to liquidate their accounts and stop using the site.
In interviews with the news wire, seven Iranian traders said they signed up with no verification at all with the help of Binance.
"None of the alternatives were as good as Binance," Asal Alizade said. We all used it because it didn't require identity verification.
The company's "IRAN BOYS" nickname was used by senior employees who knew of the growing popularity in the country.
The company is owned by a holding company in the Cayman Islands and the American version of the platform is controlled by a Canadian.
Legal experts said that in spite of the potential loopholes, Binance could be beholden to "secondary sanctions," or rules that try to prevent financial institutions from helping those in sanctions countries.
According to a number of users contacted by the news agency, their accounts were closed at the end of September 2021.
It seems like only a matter of time before the US government starts cracking down on virtual currency exchanges given that federal courts have determined that they are subject to the same sanctions as traditional finance institutions.
Clients say that Binance served them in Iran.
The FBI has a huge reward for the person who is accused of stealing $4 billion.
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