Binance was slapped with a $4.3 billion fine because it let groups like Hamas and ISIS receive funds: Treasury Department::“Can barely buy an AK-47 with 600 bucks,” a Binance compliance staffer told his boss in 2019, per regulators.
There’s just no way the US dollar could ever possibly be used that way. 🙄
How do those companies pay these gigantic fine? $4 billion wire transfer? Does the bank even allow wiring that huge amount of money? Monthly Installment? Trucks carrying palettes of money?
The balance is kept at a bank and the banks have ledgers with the reserve bank who in turn adds $40B to the asset column and negates $40B from the liabilities column. That’s the basic version. Nothing changes hands per se. It’s just 1s and 0s on a computer.
My bank only allows like $2 million dollars online wire transfer per day on their corporate account. Transferring billions would probably requires you to meet with your bank’s account manager?
I’m unsure if the details of that process are public but presumably it is possible through coordination with the bank, the treasury department, or both. What I could find publicly was that CZ’s personal fine of $70m is payable either by ETF, cashier’s check or money order.
EDIT: This rabbit hole also led me to find out that this year, British American Tobacco has a $500m fine for violating some Weapons of Mass Destruction regulation. It sounds horrifying but they basically sold equipment to make cigarettes to the DPRK and tried to hide it. It’s confronting seeing proof how blatantly corporations act. There was actual people who decided to do this.
Changpeng “CZ” Zhao, the cofounder of Binance and a central figure in the crypto world, is also stepping down as CEO under the settlement.
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Zhao is pleading guilty to breaking anti money-laundering law, per the justice department. Zhao will personally pay $50 million in fines, and faces up to 18 months in prison,
Man I feel like he’s getting off light honestly and I saw there are more charges from the SEC but how is he the only one facing time?
I love how just a year ago, he was the one to call out FTX.
People in glass houses shouldn’t throw stones and all that…
The whole industry seems like a criminal plot at this point.
Binance has no problem with its clients. FTX literally invested the money of the people in high risk assets, and they ended up bankrupted.
In the day of the Binance’s trial, people withdraw more than billion of dollars worth Cryptos. Binance didn’t end up bankrupt as they are holding A LOT.
Centralization allows for this. If people exchanged crypto peer to peer transaction amounts would be much smaller and no one person or company would have nearly as big of a share as binance. So I will continue to say not your keys, not your coins.
We only know ftx was stealing due to a run on the exchange. Binance could also easily be in the same boat, we just don’t know, as they have not been tested for there liquidity. Also it turns out ftx pretty much had the money, but it just was not liquid.
The US government pretending that they aren’t going to make money as a result of this…
I first read Beyonce, and I was both confused and impressed by her troublemaking and net worth
