Binance Allegedly Used Sanctioned Banks for P2P Crypto Transfers in Russia

<p>Binance
aided peer-to-peer (P2P) crypto transfers among Russians using at least
five banks sanctioned by Western governments after Russia launched a full-scale
invasion of Ukraine last year, the Wall Street Journal reported today (Tuesday). Citing the apex monetary authority in Russia, the
outlet said Russians traded about $428
million in P2P transactions within five months.</p><p>Binance
Denies Cutting Corners in Russia</p><p>Last year,
several top countries, including the UK, announced <a href="https://www.financemagnates.com/institutional-forex/uk-sanctions-5-russian-banks-and-three-high-net-worth-individuals/" target="_blank" rel="follow">sanctions
against Russian banks</a> and high-net-worth individuals in response to
Russia’s war on Ukraine. During this period, Binance announced <a href="https://www.financemagnates.com/cryptocurrency/news/binance-limits-services-for-russian-nationals/" target="_blank" rel="follow">restrictions on its services</a> in the
country. </p><p>In the report,
the Journal claimed that Binance volunteers informed users on Telegram
that the crypto exchange was not imposing trading restrictions on Russians. Earlier in the year, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> also reported that Binance<a href="https://www.financemagnates.com/cryptocurrency/binance-quietly-lifts-restrictions-on-russians/" target="_blank" rel="follow"> quietly lifted its restrictions on Russian users</a>. The users were able to deposit Russian rubles, euros, British pounds, and other currencies using bank cards issued in the country. Additionally, the exchange removed the limits on balances of more than EUR 10,000 on Russia-linked accounts, according to a report by Forklog.</p><p>However, Binance has rejected the claims in the Journal report. A
spokesperson from the
exchange told Fortune that the leading digital asset company has no
affiliation with any banks, whether in Russia or any other location, in
connection with its P2P programme.</p><p>Binance
Faces Increase Scrutiny</p><p>Meanwhile,
the report emerges as Binance faces <a href="https://www.financemagnates.com/cryptocurrency/binance-fired-over-1000-employees-in-recent-weeksreport/" target="_blank" rel="follow">legal battles on
multiple fronts</a>, particularly in the United States. In March, the Commodity Futures
Trading Commission (CFTC), which <a href="https://www.financemagnates.com/cryptocurrency/exchange/cftc-probes-binance-over-accepting-us-derivatives-traders/" target="_blank" rel="follow">has
been investigating Binance</a> since at least 2021, <a href="https://www.financemagnates.com/cryptocurrency/cftc-sues-binance-for-illegal-derivatives-exchange-numerous-violations/" target="_blank" rel="follow">initiated legal action
against the exchange</a>, alleging that the firm was operating as an illegal crypto derivatives
exchange in the country. </p><p>Among other
allegations, CFTC claimed that Binance starting from July 2019 guided US customers on
how to circumvent the exchange’s compliance measures despite claiming to have
prohibited them from its platform. However,
Binance <a href="https://www.financemagnates.com/cryptocurrency/binance-ceo-calls-cftc-lawsuit-an-incomplete-recitation-of-facts/" target="_blank" rel="follow">rejected
the allegations</a> and is now <a href="https://www.financemagnates.com/cryptocurrency/binance-takes-on-cftc-with-plans-to-seek-dismissal-of-lawsuit/" target="_blank" rel="follow">seeking
their dismissal</a>.</p><p>In the
following month, the US Securities and Exchange Commission <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">also sued Binance</a>, accusing Binance and
Founder/CEO Zhao of operating illegal trading platforms, offering unregistered
crypto asset securities and commingling customers’ funds. The case is <a href="https://www.financemagnates.com/cryptocurrency/binanceus-fights-back-motion-for-protective-order-referred-to-magistrate-judge/" target="_blank" rel="follow">still ongoing</a> at a federal court in the United
States.</p><p>DMALINK partners with Danske; SoftBank's arm targets mega IPO; <a href="https://www.financemagnates.com/forex/news-nuggets-22-august-dmalink-partners-with-danske-softbanks-arm-targets-mega-ipo/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.