Binance under investigation - page 2.

Sithara007

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Quote from: jaysabi on May 22, 2021, 07:24:16 AM

If you're operating in US jurisdictions (i.e., taking money from people living in the US or otherwise using the infrastructure of the US financial system), you're subject to the jurisdiction of the US government and US regulations. If you don't like that, don't operate in US territories. It's as simple as that.

They can put a disclaimer that US users are not allowed in their platform, but doing KYC for every user is not practical (as far as I know, Binance ask for KYC only of the daily trade volumes are above a specified limit). Putting up geography-based IP blocks doesn't work nowadays, because users will simply use a VPN. I would like to see how the exchange reacts to demands from the SEC. At least some of the charges made by the SEC will not stand in the court, and this legal battle will go on for at least a few years.

The report claims that some of the accounts received as much as $100 million in funds. In that case the KYC is clearly done here and if something is wrong with the transactions it is the duty of the law enforcement authorities to investigate it. I don't think that Binance is responsible, unless the authorities have specifically warned them to freeze these accounts.

nakamura12

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Nah, we can't force exchange to take the blame since it's not them who made such crimes but they also have the authority to implement such rules to make people stop doing illegal activities such as money laundering. You may think that you can't launder money even if you provided some credentials but that person will find a way to transfer money under radar that the platform think it is just a regular transfer funds.

geegaw

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Quote from: semobo on May 22, 2021, 10:49:47 AM

If they found guilty then surely the crypto market will get a huge hit on the prices, because in this trillion dollar market almost more than half of the assets are getting traded through the binance, even though Binance.US is having little trading volume compared to the actual Binance still it will give a strike into their reputation so people will go crazy all of a sudden by selling their assets which could result into panic selling of chain reaction.

For an exchange that gathers almost all investors and traders here, a thorough investigation and accusation could be a disaster, some forms of monetary compensation can be settled by the exchange but sealing the exchange can have a big effect on people's wealth. I don't know what the next information will be, but Binance's reputation will decrease or increase depending on this, this is a gate to prove it is in line with people's beliefs, not passing would be quite a problem for both the market and its customers

semobo

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If they found guilty then surely the crypto market will get a huge hit on the prices, because in this trillion dollar market almost more than half of the assets are getting traded through the binance, even though Binance.US is having little trading volume compared to the actual Binance still it will give a strike into their reputation so people will go crazy all of a sudden by selling their assets which could result into panic selling of chain reaction.

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Quote from: cabron on May 20, 2021, 10:42:26 PM

Quote from: jaysabi on May 20, 2021, 09:52:17 PM

If an exchange doesn't do KYC, it ought to be shut down. If an exchange facilitates tax evasion, it ought to be shut down. I don't know if Binance is doing either, I suppose that's what the investigation is about. However where there's smoke there's usually fire. This isn't some wild fishing expedition. The investigators probably have a pretty good idea of what they're going to find, which is the genesis of the investigation.

It could be true. They have been moving many times in the past which right now is Cayman Island. They may be right about some suspicious activity to the exchange but what right will the US government have to examine their database?

I'm sure they could find more on Yobit or any other exchange that had been long active before Binance suck as Bittrex or Polo. I can not exclude reasons like it's political if they only investigate Binance.

If you're operating in US jurisdictions (i.e., taking money from people living in the US or otherwise using the infrastructure of the US financial system), you're subject to the jurisdiction of the US government and US regulations. If you don't like that, don't operate in US territories. It's as simple as that.

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Quote from: cabron on May 20, 2021, 10:42:26 PM

Quote from: jaysabi on May 20, 2021, 09:52:17 PM

If an exchange doesn't do KYC, it ought to be shut down. If an exchange facilitates tax evasion, it ought to be shut down. I don't know if Binance is doing either, I suppose that's what the investigation is about. However where there's smoke there's usually fire. This isn't some wild fishing expedition. The investigators probably have a pretty good idea of what they're going to find, which is the genesis of the investigation.

It could be true. They have been moving many times in the past which right now is Cayman Island. They may be right about some suspicious activity to the exchange but what right will the US government have to examine their database?

I'm sure they could find more on Yobit or any other exchange that had been long active before Binance suck as Bittrex or Polo. I can not exclude reasons like it's political if they only investigate Binance.

And I believe, Binance will be ready also for this kind of investigation. They are moving their location for some legal reasons, and they know about what will happen. For sure, they have legal team already looking into this situation. As top 1 exchange, they should know better if the government is already after for them. This is also the reason why they created Binance.US, just to cater the US residents. They know their possible legal situations that they may face. I don't think they can easily topple a reputable exchange without valid reason.

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Quote from: jaysabi on May 20, 2021, 09:52:17 PM

If an exchange doesn't do KYC, it ought to be shut down. If an exchange facilitates tax evasion, it ought to be shut down. I don't know if Binance is doing either, I suppose that's what the investigation is about. However where there's smoke there's usually fire. This isn't some wild fishing expedition. The investigators probably have a pretty good idea of what they're going to find, which is the genesis of the investigation.

It could be true. They have been moving many times in the past which right now is Cayman Island. They may be right about some suspicious activity to the exchange but what right will the US government have to examine their database?

I'm sure they could find more on Yobit or any other exchange that had been long active before Binance suck as Bittrex or Polo. I can not exclude reasons like it's political if they only investigate Binance.

jaysabi

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Quote from: Twinkledoe on May 15, 2021, 11:56:34 PM

Quote from: jaysabi on May 15, 2021, 11:50:50 PM

Quote from: fr4nkthetank on May 14, 2021, 04:27:22 PM

meh, chainanalysis is a hot heap of garbage. Their website says : "Building Trust in Blockchain". Blockchain/Bitcoin solves the 3rd party Trust problem, ironic no? Seems like they want big gov contracts to me. They just got 100 million in financing. I dont like Binance but I like chainanalysis even less.

Just because the blockchain is public doesn't mean it's transparent. Have you ever tried to to trace bitcoin to see where it originates from? It's impossible. Chainanalysis offers services that do that, which is going to be ever more important as crypto becomes more mainstream and you have to verify that you as a business are not unwittingly abetting money laundering by dealing in crypto.

If this investigation is true, I believe, Binance is already doing their job to defend themselves in case this situation goes to another level. Also, I think, most of crypto-exchanges are guilty of receiving some illegal crypto coins at one point as it is indeed hard to trace where coins are coming from, especially those that don't require KYC for certain levels. If they will investigate Binance, they should investigate all the other crypto exchanges as well. Binance may be at the hot seat as they are the number 1 exchange and earning very good amount of money.

If an exchange doesn't do KYC, it ought to be shut down. If an exchange facilitates tax evasion, it ought to be shut down. I don't know if Binance is doing either, I suppose that's what the investigation is about. However where there's smoke there's usually fire. This isn't some wild fishing expedition. The investigators probably have a pretty good idea of what they're going to find, which is the genesis of the investigation.

disconnectme

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I have a feeling this recent Binance FUD is a coordinated effort and we will forget this is few months when the market rebound. Binance team know this and are not stupid not to take strong people to join their side, they have the money to pay now for political influence and this will help them have soft landing

fullhdpixel

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Quote from: fiulpro on May 14, 2021, 04:19:21 PM

What do you think ?
This could be a big deal.
Would it drive the price down ?

Whether Binance or the traders should be blamed? Well, in a case like this the government is going to hold Binance responsible for giving such an opportunity to money launderers to make use of their platform in carrying out such activities. The government doesn't know who those people are, so all they know is Binance and that's who they are going to be holding responsible for it.

In a case whereby they know who those people are, it still won't stop fact that Binance would be held responsible , but all those people will also be held accountable for what they have done. I don't know whether this is going to affect Binance in any way at all, because I believe that they are going to be able handle the charges and still keep moving. Even if it does have any effect on their tokens’ price, it's going to be a situation that will be temporary.

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Quote from: Bitstar_coin on May 16, 2021, 03:29:07 AM

Maybe if binance is found guilty and probably got shot down by the government there won't be anymore manipulation in crypto, everything will be fine and things will go smoothly, from all I read, it seems binance is the only exchange involved in this type of accusation Undecided

, unfortunately binance have many users that will be affected if things go bad.

I don't believe that there is someone in this world that's not satisfied with binance exchange, this exchange is the best for me it where I swap coins and trade coins too, also I believe that the Government has the power to investigate any crypto exchange they feel like not just binance alone so this isn't something new

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Quote from: (o)(o)ilikeboobs(o)(o) on May 16, 2021, 08:41:52 AM

Binance.com has been one of the world's largest exchanges by trading volume for a long time. Altcoins on Binance have been over-pumped recently and they have fake volume.
I am not surprised that Binance.com has been investigated because, in the past major exchanges such as Bifinex, Huobi or Okex have been investigated. Bitmex CEO Arthur Hayes has also been sued and jailed for money laundering. It is normal and necessary to investigate an exchange. If Binance.com makes a mistake they are responsible for their actions.

It is not surprising that Binance was investigated by the American government in the end. because the US government has been investigating
exchanges for a long time. As you said it is not only Binance that is investigated by the American government. Since several other exchanges
have been investigated, the US government just wants to make sure that Binance is not carrying out any illegal activities. As long as Binance
hasn't done anything wrong, there shouldn't be any worries about the investigations the American government is carrying out.

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Quote from: suzanne5223 on May 16, 2021, 04:49:56 PM

Quote from: Ultegra134 on May 16, 2021, 01:30:39 PM

Quote from: suzanne5223 on May 16, 2021, 12:50:26 PM

Quote from: GeorgeJohn on May 15, 2021, 03:56:19 AM

Binance is very big and i dont think it will be very easy for those people that is against binance because of cryptocurrency to get it down, since some countries rise against cryptocurrency and their no succeeding to bring crypto world down, it's obvious that no amount of investigation government can carry on to bring binance down, i only seeing this like something that will make crypto stronger in time coming.

First, this is issue has nothing to do with how big Binance exchange is for the exchange cant big pass the law and if found guilty it will be brought to justice.
Second, this is only about Binance exchange it not about bring cryptocurrency down and if the government cannot bring crypto down that doesn't mean they cannot bring Binance if they are guilty of what accused of.

What I say might be complete nonsense, however, I highly believe that many exchanges are currently being used for money laundering and tax evasion. Don't get me wrong, that's just my impression, stemming from the nature of cryptocurrencies. Of course and Binance should be investigated and we'll wait on the verdict soon enough.

I wonder if this incident will have any effect in Binance Smart Chain and DeFi projects.

We don't know if exchange are indeed used for money laundering and tax evasion but if it was only ignorant person will use a centralized for such purpose when there's decentralization exchange and Bitcoin tumbler site that will handle the issue without any further query.

If Binance found guilty it may affect all their services( including BSC) and the market because Binance the number one exchange but if they are ask to pay some certain fee it won't affect their products.

With the position of Binance in crypto market, I have no doubt that they will be ready for this kind of situation.
We don't have the full information of what is going on yet with this investigation.
They have come a long way already, so I hope they are prepared for this.
There are so many users that are relying on their services. And I can say, most of them are satisfied with those services.
So for me, going down is not an option. Hope they can resolve this issue before it escalates into something bigger.

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Quote from: Ultegra134 on May 16, 2021, 01:30:39 PM

Quote from: suzanne5223 on May 16, 2021, 12:50:26 PM

Quote from: GeorgeJohn on May 15, 2021, 03:56:19 AM

Binance is very big and i dont think it will be very easy for those people that is against binance because of cryptocurrency to get it down, since some countries rise against cryptocurrency and their no succeeding to bring crypto world down, it's obvious that no amount of investigation government can carry on to bring binance down, i only seeing this like something that will make crypto stronger in time coming.

First, this is issue has nothing to do with how big Binance exchange is for the exchange cant big pass the law and if found guilty it will be brought to justice.
Second, this is only about Binance exchange it not about bring cryptocurrency down and if the government cannot bring crypto down that doesn't mean they cannot bring Binance if they are guilty of what accused of.

What I say might be complete nonsense, however, I highly believe that many exchanges are currently being used for money laundering and tax evasion. Don't get me wrong, that's just my impression, stemming from the nature of cryptocurrencies. Of course and Binance should be investigated and we'll wait on the verdict soon enough.

I wonder if this incident will have any effect in Binance Smart Chain and DeFi projects.

We don't know if exchange are indeed used for money laundering and tax evasion but if it was only ignorant person will use a centralized for such purpose when there's decentralization exchange and Bitcoin tumbler site that will handle the issue without any further query.

If Binance found guilty it may affect all their services( including BSC) and the market because Binance the number one exchange but if they are ask to pay some certain fee it won't affect their products.

teosanru

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Due to stringent actions and pressure from the US Authorities, Binance created Binance US so that at least every US User remains under the radar of the federal government, and money laundering and tax frauds can be controlled to some extent. However, I feel that a normal investor shouldn't be that worried. Obviously, trading is mechanical and the user has no control over it. It's about the deposits and withdrawals that they could cry about and that I think can be easily explained on the basis of blockchain transparency and any user can easily depict the flow of their cryptocurrencies. So even if you are caught, there isn't a big deal to worry about. Moreover Binance too will easily get out of this mess if they haven't done anything, they are not newbies in this space.

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Quote from: suzanne5223 on May 16, 2021, 12:50:26 PM

Quote from: GeorgeJohn on May 15, 2021, 03:56:19 AM

Binance is very big and i dont think it will be very easy for those people that is against binance because of cryptocurrency to get it down, since some countries rise against cryptocurrency and their no succeeding to bring crypto world down, it's obvious that no amount of investigation government can carry on to bring binance down, i only seeing this like something that will make crypto stronger in time coming.

First, this is issue has nothing to do with how big Binance exchange is for the exchange cant big pass the law and if found guilty it will be brought to justice.
Second, this is only about Binance exchange it not about bring cryptocurrency down and if the government cannot bring crypto down that doesn't mean they cannot bring Binance if they are guilty of what accused of.

What I say might be complete nonsense, however, I highly believe that many exchanges are currently being used for money laundering and tax evasion. Don't get me wrong, that's just my impression, stemming from the nature of cryptocurrencies. Of course and Binance should be investigated and we'll wait on the verdict soon enough.

I wonder if this incident will have any effect in Binance Smart Chain and DeFi projects.

suzanne5223

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Quote from: GeorgeJohn on May 15, 2021, 03:56:19 AM

Binance is very big and i dont think it will be very easy for those people that is against binance because of cryptocurrency to get it down, since some countries rise against cryptocurrency and their no succeeding to bring crypto world down, it's obvious that no amount of investigation government can carry on to bring binance down, i only seeing this like something that will make crypto stronger in time coming.

First, this is issue has nothing to do with how big Binance exchange is for the exchange cant big pass the law and if found guilty it will be brought to justice.
Second, this is only about Binance exchange it not about bring cryptocurrency down and if the government cannot bring crypto down that doesn't mean they cannot bring Binance if they are guilty of what accused of.

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Quote from: fiulpro on May 14, 2021, 04:19:21 PM

What do you think ?
This could be a big deal.
Would it drive the price down ?

I think it could have a bit of influence on some particular Cryptos which are not listed everywhere. For example Shiba is still being listed but slowly. Therefore it might cause a decrease in Price of such cryptocurrencies if there are some problems.

Being under investigation as an exchange is not a strange deal, it happens to all the companies that are working with crypto, you think Coinbase never worked with SEC or IRS or any other branch? They had to work with them 7/24 to be able to be where they are. However we have to realize WHEN binance became under investigation, binance started their binance.us website which is totally working for the Americans and that means if you want to start a company there you have to be following every single law in USA as well and that is why they are "under investigation".

The short version is "usa is looking into binance.us to see if they are following all the laws" and nothing more, if they do not follow all the laws that means there will be a huuuuge penalty for them, if they are following all the laws that means nothing will happen to them at all.

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Quote from: o48o on May 16, 2021, 07:32:42 AM

This is a literal example of lack of liquidity combined with fat fingers. And when stop losses activate, it can become an extreme example like this but huge wicks are not unique. The fact that it went so down also means that this fat fingering moron lost a lot of money. If it would be manipulation the price wouldn't just come back in an instant and no one in their right mind would like to use such an expensive and ineffective tactics for manipulation. In places that don't offer any protection against fat fingering and have low liquidity, you can potentially make a lot of money by setting lot of low buy orders.

I would still believe in such a version on some low-liquid exchange, where one order can empty the entire order book. But we're talking about Binance, where the trading volume is tens of millions. What other fat fingers? Do you seriously think that this was done by some crooked trader who accidentally pressed the wrong button? Obviously, it was not without the participation of internal market makers and their bots.

First of all, trading volume and good liquidity are whole different things, volume can be faked quite easily with thin walls, (most of the time by exchanges themselves). And sometimes even that good liquidity just falls short momentarily creating a short window to someone fuck things up. That got fixed quickly and as you can see the buy orders came back right away.

Entire orderbook for one pair can be destroyed by a bigger whale by mistake (especially few years ago). I personally know one whale what could have crashed one of the top projects while ago with all the pairs because he was one of the largest holders and obviously he didn't want to do that on purpose, but all you need is to make a drunken accident, that's Occam's razor for you, it doesn't need a conspiracy.

And i disagree about your opinion about WSB. I think it was good for cmc to stand with them in this case, the situation showed the need of decentralization and awareness was needed.

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Binance.com has been one of the world's largest exchanges by trading volume for a long time. Altcoins on Binance have been over-pumped recently and they have fake volume.
I am not surprised that Binance.com has been investigated because, in the past major exchanges such as Bifinex, Huobi or Okex have been investigated. Bitmex CEO Arthur Hayes has also been sued and jailed for money laundering. It is normal and necessary to investigate an exchange. If Binance.com makes a mistake they are responsible for their actions.

Topic: Binance under investigation - page 2. (Read 661 times)