![]() ![]() She said the reach of the international financial networks, as well as the multiple accounts and speed of the deposits and withdrawals, raises red flags that the DOJ will likely be looking into. With the SEC typically more focused on securities violations than money laundering, Lynch said that the agency was setting the stage through forensic accounting and monitoring the Binance accounts to which it had access. “Binance has not been accused of engaging in money laundering by the SEC.” Enter the DOJ “These types of transactions are typical of most global corporate entities and are required to ensure we are able to facilitate our products and services in a stable and compliant manner,” a spokesperson said in a statement shared with Fortune. “It seemed to be very tactical-the millions, and at times billions, that moved within a couple of months to these offshore accounts located in different parts of the world, that still have an account at these U.S.-based banks,” she told Fortune.īinance has denied any impropriety with the flows of money, as well as allegations from the SEC that it mishandled customer funds. Suzanne Lynch, an expert in money laundering and professor of economic crime at Utica College, says these are the types of red flags that investigators will be examining. ![]() As the industry continues to evolve, it will be interesting to see how CZ and Binance fare in the face of increasing regulatory scrutiny and competition from other exchanges.The SEC does not include an explanation for the arcane series of transactions, nor Zhao’s control over the dozens of entities in the Binance network. Nevertheless, CZ remains a prominent figure in the cryptocurrency world, and his wealth and success serve as a reminder of the significant impact that cryptocurrencies are having on the global economy. However, given Binance’s refusal to publish its financial data and the ongoing regulatory challenges it faces, it is difficult to determine the accuracy of these estimates. ![]() Binance and CZ have come under fire for breaking trading and derivatives laws, with the US Commodity Futures Trading Commission filing a lawsuit against them.ĭespite this, CZ’s wealth has continued to grow, with Forbes estimating his net worth at $10.5 billion as of April 26, 2023. In November 2022, FTX, another cryptocurrency exchange, collapsed, leading to increased regulatory scrutiny of the industry. However, Binance’s success has not come without controversy. He then went on to work on trading systems before launching Binance, which quickly became a favorite among traders due to its low fees and high trading volumes. Despite not publishing its financial data, Bloomberg estimates Binance’s annual revenue to be around $12 billion as of April 5, 2023.ĬZ’s rise to prominence in the world of cryptocurrencies began when he was introduced to Bitcoin by crypto entrepreneur Bobby Lee at a poker game in Shanghai. Binance has quickly become the largest crypto exchange in the world, controlling over 50% of the market and boasting more than 120 million users. The majority of CZ’s wealth comes from his cryptocurrency exchange, Binance, which he founded in 2017. According to Bloomberg’s latest selection of the 25 financial titans who made their wealth through “computer-driven trading companies,” CZ was ranked third, with a net worth of $28.2 billion. Binance CEO Changpeng Zhao, commonly known as CZ, has made headlines once again as one of the world’s wealthiest individuals. ![]()
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