Japanese crypto exchange sues Binance for money laundering

  • Japanese crypto exchange sues Binance.

  • The plaintiff claims that Binance facilitated the laundering of money stolen from him through its services.

  • The damage was estimated at $ 9 + million.

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Crypto exchange Fisco has filed a lawsuit against crypto industry heavyweight Binance, accusing the project of money laundering in excess of $ 9 million..

“Judge me!”

The Japanese cryptocurrency exchange Fisco has filed a lawsuit in the US court with accusations against Binance, one of the world’s leading crypto exchanges. Binance helped launder more than $ 9 million of money previously stolen from Fisco, according to plaintiff..

Fisco’s Zaif exchange was hacked in 2018, and lost nearly 6,000 bitcoins, according to a lawsuit filed on September 14 in the Northern District Court of California. The cybercriminals transferred some of these funds to the Binance platform. We are talking about 1,451 military-technical cooperation, which is equivalent to about $ 9.4 million at the current exchange rate at the time of the theft.

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Criminal negligence

According to Fisco’s accusations, Binance’s inappropriate Know Your Customer (KYC) policies played into the hands of the hackers. Plaintiff Says Binance’s Protocols Are “Shockingly Weak” And Doesn’t Meet Crypto Industry Standards.

The overly simplistic requirements of the exchange for identifying the identity of users allowed cybercriminals to easily launder stolen money and convert it into other crypto assets or cash. So, Binance allowed attackers to open new accounts and make numerous anonymous transactions between them for amounts not exceeding the threshold of 2 BTC and therefore do not require user identification..

Japanese crypto exchange filed in ...

We add that quite often such distribution of funds to new addresses is associated with attempts by fraudsters to cover their tracks and get lost in the network. Accordingly, incomprehensible movements of large amounts traditionally attract the attention of the crypto community..

In addition, according to the lawsuit, shortly after the hack, representatives of Zaif contacted the management of Binance with a request to freeze the stolen bitcoins. However, the exchange “intentionally or through negligence did not interrupt the money laundering process when it could do so”.

Compensation for damage

Now Fisco wants a jury to help her recover the stolen $ 9 + million, as well as the interest that has come up since the break-in.

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In addition, the exchange is demanding from Binance “fair compensation for the time and money spent looking for property.”.

Recently, BeInCrypto’s editors have already reported that the creators of the ransomware Ryuk laundered over $ 1 million through Binance.


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