“I HAZ NO CONFIDENCE IN OUR
GEOFENCING.”
&
“can barely buy an AK47 with 600 bucks.”
must be the two funniest quotes
in CFTC against CZ, Binance & Samuel Lim
otter read all 74 pages to find you the lols
a thread for light reading
🦦👇🏼🧵
According to a legal document filed by the CFTC, Zhao's strategy of not implementing effective compliance controls at Binance was widely known within the company
#Binance #cryptocurrency
In a chat from January 2019, a senior member of Binance's compliance team discussed their plan to "clean up" the presence of U.S. customers on Binance. They explained that "Cz doesn't wanna do us kyc on .com."
#compliance #KYC
According to CFTC, Binance had a financial incentive to avoid subjecting customers to meaningful KYC procedures. In February 2020, Lim acknowledged that if Binance's compliance controls were "too stringent" then "[n]o users will come."
Despite knowing about Binance's compliance failures, Zhao, Lim, and others publicly represented that the platform had effective compliance controls. In August 2019, Lim assured a state financial regulator in the U.S. that "our [compliance] program provides for AML/CFT controls."
Four months later, in a message to a colleague, Lim admitted that ".com doesn't even do AML namescreening/sanctions screening." #compliance #AML
Binance also intentionally tried to hide the scope of its compliance program's ineffectiveness from its business partners.
In October 2020, Binance underwent a compliance audit to satisfy a request from Paxos.
But Binance purposely engaged a compliance auditor that would "just do a half assed individual sub audit on geo[fencing]" to "buy us more time."
In November 2020, Binance's Money Laundering Reporting Officer ("MLRO") exclaimed to Lim in a chat, "I HAZ NO CONFIDENCE IN OUR GEOFENCING."
Binance officers, employees, and agents have acknowledged that the platform has facilitated potentially illegal activities. In February 2019, Lim explained to a colleague that terrorists usually send "small sums" on Binance, as "large sums constitute money laundering."
Lim’s colleague reply to the comment from the previous tweet:
“can barely buy an AK47 with 600 bucks.”
🦦
With regard to certain Binance customers, including customers from Russia, Lim acknowledged in a February 2020 chat: "Like come on. They are here for crime."
In July 2020, a Binance employee wrote to Lim and another colleague asking if a customer whose recent transactions "were very closely associated with illicit activity" and "over 5m USD worth of his transactions were indirectly sourced from questionable services"...
and asked if he should be off-boarded
Lim instructed to let the customer open a new account and continue trading on the platform
click this link if you would like to read the civil action in its entirety
keep in mind these are all allegations, which are unsettled in court
how did CFTC access these messages?
was there a mole or traitor?
docdroid.net/60YAbCz/cftc-binance-pdf