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Binance Holdings Ltd., branded Binance, is the largest cryptocurrency exchange in terms of daily trading
volume Volume is a measure of regions in three-dimensional space. It is often quantified numerically using SI derived units (such as the cubic metre and litre) or by various imperial or US customary units (such as the gallon, quart, cubic inch) ...
of
cryptocurrencies A cryptocurrency (colloquially crypto) is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Individual coin ownership records ...
. Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high-frequency trading software. Binance was initially based in China, then moved to Japan shortly before the Chinese government restricted cryptocurrency companies. Binance subsequently left Japan for Malta and currently has no official company headquarters. Binance has been the subject of lawsuits and challenges from regulatory authorities throughout its history. As a result, Binance has been banned from operating or ordered to cease operations in some countries, and has been issued fines. In 2021, Binance was put under investigation by both the
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...
and
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administerin ...
on allegations of
money laundering Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...
and tax offenses. The UK's
Financial Conduct Authority The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom. It operates independently of the UK Government and is financed by charging fees to members of the financial services industry. The FCA regulates financi ...
ordered Binance to stop all regulated activity in the United Kingdom in June 2021. That same year, Binance shared client data, including names and addresses, with the Russian government. In November 2023, the company pleaded guilty in a US federal court to money laundering, unlicensed money transmitting, and sanctions violations.


History


2013–2017: company beginnings and move out of China

CEO Changpeng Zhao founded Fusion Systems in 2005 in
Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...
; the company built high-frequency trading systems for stockbrokers. In 2013, he joined Blockchain.info as the third member of the cryptocurrency wallet's team. He also worked at OKCoin as CTO for less than a year, a platform for spot trading between
fiat Fiat Automobiles S.p.A., commonly known as simply Fiat ( , ; ), is an Italian automobile manufacturer. It became a part of Fiat Chrysler Automobiles in 2014 and, in 2021, became a subsidiary of Stellantis through its Italian division, Stellant ...
and digital assets. He was hired at this position in 2014 by Yi He, with whom he co-founded Binance several years later. The company was founded in 2017 in
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
but moved its servers and headquarters out of the country in advance of the Chinese government's ban on cryptocurrency trading in September 2017. Zhao asked He to join Binance, and she helped rewrite parts of the white paper for Binance's $15 million initial coin offering.


2018–2019: launch of stablecoin and security breach

In January 2018 it was the largest cryptocurrency exchange with a
market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...
of $1.3 billion, a title it had retained as late as April 2021, despite competition from Coinbase, among others. In March 2018, Binance announced its intentions to open an office in
Malta Malta, officially the Republic of Malta, is an island country in Southern Europe located in the Mediterranean Sea, between Sicily and North Africa. It consists of an archipelago south of Italy, east of Tunisia, and north of Libya. The two ...
after stricter regulations in Japan and China. In April 2018, Binance signed a memorandum of understanding with the government of
Bermuda Bermuda is a British Overseas Territories, British Overseas Territory in the Atlantic Ocean, North Atlantic Ocean. The closest land outside the territory is in the American state of North Carolina, about to the west-northwest. Bermuda is an ...
. Months later, a similar memorandum was signed with the Malta Stock Exchange to develop a platform for trading security tokens. In 2019, the company announced Binance Jersey, a
Jersey Jersey ( ; ), officially the Bailiwick of Jersey, is an autonomous and self-governing island territory of the British Islands. Although as a British Crown Dependency it is not a sovereign state, it has its own distinguishing civil and gov ...
-based exchange which offers fiat-to-cryptocurrency pairs, including the
Euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
and the British pound. In June 2018, Binance and three other firms raised $65 million for sports blockchain company Chiliz. In July 2018, Binance acquired Trust Wallet, a decentralized cryptocurrency wallet for an undisclosed sum composed of a mixture of cash, Binance stock, and BNB tokens. In August 2018, Binance along with three other large exchanges raised $32 million to fund the stablecoin project Terra. This was intended to facilitate cryptocurrency transactions with less volatility. In January 2019, Binance announced that it had partnered with Israel-based payment processor Simplex to enable some cryptocurrencies to be purchased with debit and credit cards. On 7 May 2019, Binance revealed that it had been the victim of a "large scale security breach" in which hackers had stolen 7,000 bitcoin worth around $40 million at the time. Binance halted all transactions for one week while investigating. Binance also pledged to reimburse customers from an emergency fund. In June 2019, the company announced it would prohibit US passport holders as well as anyone residing in the US, and would set up a new entity binance.us to support those customers. Later in 2023, ''Forbes'' leaked a document allegedly from Binance titled "TaiChi" that proposed this regulatory solution to reduce US regulatory risk. Binance subsequently denied the document, sued Forbes for defamation, and subsequently dropped the lawsuit. In September 2019, the exchange began offering perpetual futures contracts, allowing leverage as high as 125 times the value of the contracts. In November 2019, Binance announced it was acquiring
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
n bitcoin exchange WazirX, which became disputed in August 2022 when Binance founder Zhao claimed the deal was never signed.


2020–2023: acquisitions and investments

On 21 February 2020, the Malta Financial Services Authority (MFSA) issued a public statement responding to media reports referring to Binance as a Malta-based cryptocurrency company. The statement noted that Binance "is not authorized by the MFSA to operate in the cryptocurrency sphere and is therefore not subject to regulatory oversight by the MFSA." The MFSA added that it was "assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight." In July 2020, Binance announced a "strategic partnership" with a Chinese
state-owned enterprise A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...
under the State-owned Assets Supervision and Administration Commission of the State Council and that Binance had joined a group "aiming to facilitate" the Belt and Road Initiative. On 28 October 2020, ''
Forbes ''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...
'' staff released leaked documents showing that Binance and its CEO, Changpeng Zhao, created an elaborate corporate structure designed to intentionally deceive United States regulators and secretly profit from cryptocurrency investors located in the country. Binance officially blocks access from IP addresses located in the United States, but "potential customers would be taught how to evade geographic restrictions", ''Forbes'' claimed. In May 2021, it was reported that Binance was under investigation by both the
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administerin ...
and the
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...
on allegations of money laundering and tax offenses. In February 2022, Binance took a $200 million stake in ''Forbes''. It's unclear if this investment was ever completed. In May 2022, Forbes Global Media Holdings halted plans to go public via a merger with Magnum Opus Acquisition Ltd, a Hong Kong-based
special-purpose acquisition company A special-purpose acquisition company (SPAC; ), also known as a blank check company or a blind-pool stock offering, is a shell corporation listed on a stock exchange with the purpose of acquiring (or merging with) a private company, thus taking ...
. Zhao said the plan had "changed a little bit, but I believe that's still in discussions." In February 2023, Zhao tweeted his disappointment that ''Forbes'' "continues to write baseless articles" about Binance. In March 2022, amidst the
2022 Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
, Zhao refused to ban users from Russia, citing "financial freedom". Binance later softened the tone of their opposition but not their policy, and also pointed to their donation of $10 million for humanitarian needs in Ukraine. Over 2022,
Reuters Reuters ( ) is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages. Reuters is one of the largest news agencies in the world. The agency ...
released several investigative reports on Binance. In January, Reuters documented multiple instances where Binance had withheld information from government investigators and business partners and had ignored warnings from their own compliance teams regarding money laundering risks and poor know your customer compliance. Binance disputed the accuracy of this report. In June, Reuters found that Binance had acted as a conduit for the laundering of at least $2.35 billion from hacks, $780 million dollars laundered from the Russian darknet market Hydra, and €800 million from investment scams. The report also found that Binance had been used by the Lazarus Group to launder funds stolen by
North Korea North Korea, officially the Democratic People's Republic of Korea (DPRK), is a country in East Asia. It constitutes the northern half of the Korea, Korean Peninsula and borders China and Russia to the north at the Yalu River, Yalu (Amnok) an ...
to support its weapons program. Binance dispute these findings. In April, Reuters reported that, in 2021, Binance shared information with Rosfinmonitoring about funds raised by late Russian opposition leader
Alexei Navalny Alexei Anatolyevich Navalny (, ; 4 June 197616 February 2024) was a Russian Opposition to Vladimir Putin in Russia, opposition leader, anti-corruption in Russia, corruption activist and political prisoner. He founded the Anti-Corruption Found ...
's network. In March 2023, the exchange banned Russian residents from buying euros and dollars through its p2p service. In turn, European users lost the ability to buy rubles. In September 2023, Binance announced it was leaving Russia and selling its business to the CommEX platform, which had been launched the previous week. Binance accounts of Russian users were able to transfer to the new platform until March 2024. CommEX shut down on 10 May 2024. On 27 May 2022, Binance announced the registration of its legal entity in Italy and plans to open offices in the country. At the time, the company was also seeking registration in more European countries, such as Switzerland, Sweden, Spain, Netherlands, Portugal, and Austria. Binance registered to operate in Spain in July 2022, and in Sweden in January 2023. On 13 June 2022, Binance announced that for an unspecified period of time users would not be unable to withdraw their funds held in bitcoin, as the value of cryptocurrencies suffered serious declines. Bitcoin withdrawals were allowed to resume later the same day. Binance sponsored the
Africa Cup of Nations The Africa Cup of Nations, commonly abbreviated as AFCON and officially known as the TotalEnergies Africa Cup of Nations for sponsorship reasons, is the main biennial international men's association football competition in Africa. It is s ...
in 2021. It is also taking crypto education to many countries on the continent. Binance invested US$500 million towards the acquisition of Twitter by Elon Musk that completed in October 2022. Following the investment, the company announced the creation of a team to work on how blockchain and cryptocurrencies could be helpful to
Twitter Twitter, officially known as X since 2023, is an American microblogging and social networking service. It is one of the world's largest social media platforms and one of the most-visited websites. Users can share short text messages, image ...
. On 8 November 2022, Binance offered to buy rival cryptocurrency exchange FTX's non-US operations (FTX.com) to help cover the latter's liquidity crunch. Binance backed out of the deal the next day citing concerns about FTX's business practices and investigations by US financial regulators. On 30 November 2022, Binance purchased Sakura Exchange. The acquisition allowed Binance to re-enter the Japanese cryptocurrency market. In July 2023, several senior executives resigned from the company. ''
The Wall Street Journal ''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...
'' reported that Binance had cut its global workforce by as many as 1,000 staff. CNBC reported that the number of staff cuts could total 3,000 by the end of 2023. Zhao did not deny layoffs were occurring but claimed both the reported numbers and the reasons for the senior executive departures were not accurate. In June 2023, Binance had 790 million US dollars in outflows after the SEC announced its lawsuit and ''Forbes'' reported that the company had 120 million users globally. On 21 November 2023, a US judge convicted Binance on multiple charges—including violations of the Bank Secrecy Act, money laundering schemes, unlicensed money transmitting, and sanctions violations. As part of the plea deal, the company agreed to pay $4 billion in fines, and Changpeng Zhao stepped down as CEO with a $50 million fine. Zhao was succeeded by Richard Teng.


2024-present

According to a 2024 report in ''The Wall Street Journal'' covering 2023, Binance fired several members of its internal investigation team who were tasked with investigating
market manipulation In economics and finance, market manipulation occurs when someone intentionally alters the supply or demand of a security to influence its price. This can involve spreading misleading information, executing misleading trades, or manipulating ...
such as
pump and dump Pump and dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements (pump), in order to sell the cheaply purchased stock at a higher price (dump). O ...
schemes and wash trading. According to ''The Wall Street Journal'', an internal investigation within Binance found that a VIP client of the company, a trading and investment firm named DWF Labs, had previously advertised its ability to manipulate the market by generating "believable" artificial volume to increase the price of tokens. The investigation also found examples of DWF selling tokens its founder had promoted causing a crash in those token's price, which is consistent with a pump and dump scheme, and is against Binanace's terms of service. In response to this report, Binance fired the investigators and retained DWF as a client, saying that the self trading could have been accidental and that the internal team collaborated too closely with one of DWF's competitors. Binance has denied any wrongdoing. According to a 2024 study by John Griffin, a finance professor at the
University of Texas at Austin The University of Texas at Austin (UT Austin, UT, or Texas) is a public university, public research university in Austin, Texas, United States. Founded in 1883, it is the flagship institution of the University of Texas System. With 53,082 stud ...
, Binance is the most popular exchange used in pig butchering scams. Binance has occasionally cooperated with US law enforcement to return money lost in such scams. In November 2024, FTX filed a lawsuit against Binance Holdings Ltd., Zhao, and other Binance executives, seeking to recover nearly $1.8 billion that FTX alleges was fraudulently transferred. The case centers on a July 2021 stock repurchase transaction in which Binance sold its stakes—approximately 20% of FTX's international unit and 18.4% of its US-based entity—to FTX co-founder Sam Bankman-Fried. The lawsuit is one of many filed by FTX against its former investors, affiliates and clients in the bankruptcy court of
Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...
. Other defendants include former White House communications officer Anthony Scaramucci, digital-asset exchange
Crypto.com Crypto.com is a cryptocurrency exchange company based in Singapore that offers various financial services, including an app, exchange, and noncustodial DeFi wallet, NFT marketplace, and direct payment service in cryptocurrency. As of June 2023, ...
and political groups such as the Mark Zuckerberg-founded FWD.US.
Nigerian Nigerians or the Nigerian people are citizens of Nigeria or people with ancestry from Nigeria. The name Nigeria was derived from the Niger River running through the country. This name was allegedly coined in the late 19th century by British jo ...
authorities filed a lawsuit suing Binance for $81.5 billion for economic losses and back taxes, alleging the company has a significant presence in the country (despite not being registered), and is therefore liable for corporate income tax. In March 2025, ''The Wall Street Journal'' reported that the family of Donald Trump through World Liberty Financial had entered into talks with Binance to acquire a stake in the US arm of the business. This coincided with a push from Zhao to receive a presidential pardon for his felony conviction. According to unnamed sources cited by the ''Wall Street Journal'', Trump advisor
Steve Witkoff Steven Charles Witkoff (born March 15, 1957) is an American real estate investor and lawyer who has served as the Ambassadors of the United States#Special envoys, representatives, and coordinators, United States Special Envoy to the Middle East ...
was involved, although his office denied this. According to the ''Wall Street Journal'', a pardon from President Trump would simplify a revival of Binance's presence in the US. On March 12 2025, it was announced that the Abu Dhabi government-backed investment fund MGX Fund Management Limited had made a minority $2 billion investment in Binance.


Tokens


BNB

BNB (Build'N'Build) is a token on the BNB chain. It was originally called Binance Coin when it was launched in July 2017, for users to pay fees on the company's platform. By 2021, BNB had the third highest market capitalization among cryptocurrencies. The token was initially on the Ethereum network, then moved to BNB Smart Chain when it was released in September 2020. In February 2022, the company changed the token's name to Build'N'Build. At that time, Binance Smart Chain was also renamed to BNB Chain. BNB Chain had previously been criticized for being overly centralized, which had led to several exploits on the network. BNB had 44 validators .


Binance USD

Binance USD (BUSD) was a
US dollar The United States dollar (symbol: $; currency code: USD) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it int ...
-pegged stablecoin issued by Paxos on the behalf of Binance. In January 2023,
Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician a ...
reported that Binance-Peg BUSD "was often undercollateralized between 2020 and 2021. On three separate occasions, the gap between reserves and supply surpassed $1 billion." A Binance spokesperson said the "process of maintaining the backing ... has not always been flawless" but "has been much improved with enhanced discrepancy checks." In 2022, BUSD became the third largest stablecoin by market capitalization, following Tether (USDT) and
USD Coin USDC is a cryptocurrency stablecoin which is issued by Circle (company), Circle. It is Fixed exchange rate system, pegged to the United States dollar, and is distinct from a central bank digital currency (CBDC). Usage USDC operates as an Eth ...
(USDC). The New York Department of Financial Services issued an order to Paxos to stop minting new BUSD tokens in February 2023. In a formal statement issued on September 1, 2023, Binance announced it would discontinue support for BUSD.


BEP-20 Token Standard

BEP-20 is a token standard on the Binance Smart Chain (BSC), based on ERC-20 from Ethereum. It defines rules for token transfers, ownership, and approvals within the BSC ecosystem.


Legal status


Australia

On 6 April 2023, the
Australian Securities & Investments Commission The Australian Securities and Investments Commission (ASIC) is an independent commission of the Australian Government tasked as the national corporate regulator. ASIC's role is to regulate company and financial services and enforce laws to pro ...
cancelled the Australian financial services licence held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives (Binance). On 18 May 2023, Binance Australia announced that it had lost access to Australia's PayID payment system "due to a decision made by our third party payment service provider". The same day, Westpac bank banned Australian customers transacting with Binance.


Belgium

On June 23, 2023, Belgium's Financial Services and Markets Authority ordered Binance to “cease, with immediate effect, offering or providing any and all” virtual currency services in the country. The regulator said Binance had been offering such services “from countries that are not members of the
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
.”


Canada

On 17 March 2022, Binance has confirmed in an undertaking to the Ontario Securities Commission that it would stop opening new accounts and halting trading in existing accounts for users in
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
. In May 2023, Binance announced it would withdraw from the Canadian market due to the introduction of stricter rules in the country. On May 30, 2023, it was reported that the Ontario Securities Commission had issued an investigation order into whether Binance may have taken steps to circumvent Ontario securities law and compliance controls prior to its withdrawal from the Canadian market. In May 2024,
FINTRAC The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC; ) is the national financial intelligence intelligence agency, agency of Canada. FINTRAC was established in 2000 under the Proceeds of Crime (Money Laundering) Act to fac ...
announced that it had imposed a $4.32 million dollar fine on Binance for violating Canadian money laundering and terrorist financing laws.


France

In May 2022, Binance gained regulatory approval in France, allowing the company to provide digital asset services in the country. France is the first European country to give Binance regulatory approval. In June 2023, the Paris prosecutor's office announced that Binance was under preliminary investigation for illegal canvassing of clients and money-laundering. In January 2025, French authorities opened a judicial investigation into Binance for potential involvement in money laundering, drug trafficking, and tax fraud within the European Union from 2019 to 2024.


Germany

In April 2021, the
Federal Financial Supervisory Authority The Federal Financial Supervisory Authority (), better known by its abbreviation BaFin, is Germany's integrated financial regulatory authority. Since 2014, it has been Germany's national competent authority within European Banking Supervision. ...
in Germany warned that the company risked fines for not releasing an investor prospectus for the stock tokens it has issued.


Italy

In July 2021, Italy's Commissione Nazionale per le Società e la Borsa ordered Binance to be blocked from operating. In May 2022, Binance gained regulatory approval in Italy, allowing the company to provide digital asset services in the country.


India

In August 2022, India's
Enforcement Directorate The Enforcement Directorate (ED) is a law enforcement and economic intelligence agency of the Government of India. Established on 1 May 1956, it is responsible for enforcing economic laws and combating financial crimes. The ED operates under th ...
froze the assets of WazirX, an exchange owned by Binance, as part of a money laundering investigation. Following the event, CEO Zhao claimed that they never owned WazirX or owned any equity in Zanmai Labsthe operating entity of WazirXciting "a few issues" that prevented the completion of the acquisition. The co-founder of WazirX, Nischal Shetty, disputed Zhao's claims asserting that Binance had indeed acquired them. On 28 December, Financial Intelligence Unit (India) recommended blocking the URLs of nine crypto entities, including Binance on the grounds of non compliance to the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). On 12 January 2024, The Binance application was removed from istore and Google Play Store to prevent Indian Crypto investors from using them. In June 2024, Binance was imposed with a fine of US$ 2.25 million by the Financial Intelligence Unit, for operating in India in violation of local anti-money laundering regulations.


Japan

On 25 June 2021, Japan's Financial Services Agency warned Binance that it was not registered to do business in Japan. This was the second notice Binance received from the FSA. Previously, a similar warning was issued on 23 March 2018.


Netherlands

In April 2022, the Dutch central bank announced a €3.3m fine for Binance due to offering services within the Netherlands without being registered in the country. The fine was issued to the company after an official warning was issued to the company during August 2021. In June 2023, Binance announced that it was leaving the Netherlands after failing to obtain regulatory approval.


Nigeria

In June 2023, Nigeria's Securities and Exchange Commission recently deemed Binance's activities in the country as "illegal". It issued a declaration stating that Binance Nigeria Limited, a subsidiary of Binance, was operating unlawfully in the country. The regulator specifically instructed Binance to cease all its activities within Nigeria. On 28 February 2024, two Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, were detained by Nigeria's government on allegations of illegal operations and forex manipulation. Anjarwalla escaped custody in March. The Nigerian government subsequently filed a criminal charge against Binance for tax evasion. Amid regulatory issues in Nigeria, Binance disabled its Naira services on 8 March 2024. In May, Binance's CEO, Richard Teng, claimed that officials sought a bribe of cryptocurrency to resolve the issues, but the country's House of Representatives denied the allegations, stating that Binance's actions were an attempt to divert attention from serious criminal allegations against the company. In October 2024, Gambaryan was released after the Nigerian government dropped charges against him.


Philippines

On Monday, 25 March 2024, the
Securities and Exchange Commission The United States Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street crash of 1929. Its primary purpose is to enforce laws against market m ...
(SEC) of the Philippines has moved forward with plans to block Binance's website, citing concerns over the security of Filipino investors' funds. This decision follows the SEC's identification of Binance as operating without the necessary licensing for its investment and trading platform. Despite issuing warnings since November of the previous year, Binance continued its operations prompting the SEC to seek assistance from the National Telecommunications Commission (NTC) in blocking access to Binance's website and affiliated pages. SEC Chair Emilio Aquino emphasized the potential threat to investors' security posed by continued access to Binance's platform. Despite Binance's significant presence and activity in the Philippines, the SEC aims to provide investors with ample time to transition their investments to authorized platforms. Additionally, the SEC has collaborated with major tech companies like Google and Meta to halt Binance's digital advertising efforts targeting Filipino users, although the Binance app remains available for download on mainstream app stores.


Thailand

Thailand's Securities and Exchange Commission filed a criminal complaint against Binance on 2 July 2021, "for commission of offence under the Emergency Decree on Digital Asset Business B.E. 2561 (2018)". Additionally, Thailand's SEC cited Binance for operating without a license, a violation of Section 26 of the Digital Asset Businesses Emergency Decree. In May 2023, Thailand's Ministry of Finance issued a cryptocurrency exchange license to Gulf Binance, the joint venture of Binance and Gulf Innova, a subsidiary of Thai billionaire Sarath Ratanavadi's Gulf Energy Development. The exchange would reportedly launch later that same year.


United Kingdom

In January 2021, the UK's
Financial Conduct Authority The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom. It operates independently of the UK Government and is financed by charging fees to members of the financial services industry. The FCA regulates financi ...
began requiring firms dealing with cryptoassets to register in order to comply with anti-money laundering rules. In June 2021, Binance was ordered by the FCA to stop all regulated activity in the United Kingdom. In June 2023, the FCA canceled unused permissions granted to Binance Markets Limited, meaning the company "can no longer provide regulated activities and products" in the UK.


United States

In 2019, Binance was banned in the United States on regulatory grounds. In response, Binance and other investors opened Binance.US, a separate exchange designed to comply with all applicable US federal laws. In May 2021,
Bloomberg News Bloomberg News (originally Bloomberg Business News) is an international news agency headquartered in New York City and a division of Bloomberg L.P. Content produced by Bloomberg News is disseminated through Bloomberg Terminals, Bloomberg T ...
reported that Binance was under investigation by the
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...
and
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administerin ...
for
money laundering Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...
and
tax evasion Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to red ...
. In June 2022, the
United States Securities and Exchange Commission The United States Securities and Exchange Commission (SEC) is an independent agencies of the United States government, independent agency of the United States federal government, created in the aftermath of the Wall Street crash of 1929. Its ...
launched an enquiry into Binance to determine if the company's 2017 ICO of BNB tokens amounted to an illegal sale of a security. In December 2022, Binance's American entity Binance.US announced that it would acquire Voyager Digital's assets in a $1.02 billion deal. This deal was called off in April 2023 due to what Binance.US called a "hostile and uncertain regulatory climate". Arkham Intelligence provided data in January 2023 that identified “an alleged nexus of money laundering” from a much smaller exchange called Bitzlato through intermediate wallets of Binance. Over the course of several years, it was found that the intermediary wallet deposited $15 million worth of crypto onto Binance’s platform. In February 2023, Reuters reported that over the first three months of 2021, Binance transferred over $404 million from a Binance. US account at Silvergate Bank to Merit Peak Ltd., a company managed by Zhao. Catherine Coley, then-CEO of Binance US, was quoted in messages to another Binance executive saying that "no one mentioned" the "unexpected" transfers. Coley left Binance.US shortly thereafter. Reuters said the transfers called into question the purported independence of Binance.US from Binance.com. A Binance.US spokesperson said the Reuters report used "outdated information" without further elaboration. On 1 March 2023, US Senators
Elizabeth Warren Elizabeth Ann Warren (née Herring; born June 22, 1949) is an American politician and former law professor who is the Seniority in the United States Senate, senior United States senator from the state of Massachusetts, serving since 2013. A mem ...
, Chris Van Hollen, and
Roger Marshall Roger Wayne Marshall (born August 9, 1960) is an American politician, physician, and former military officer serving as the junior United States senator from Kansas since 2021. A member of the Republican Party, he served from 2017 to 2021 as ...
wrote a letter to Binance describing the exchange as "a hotbed of illegal financial activity that has facilitated over $10 billion in payments to criminals and sanctions evaders". The letter formally requested documents related to Binance's compliance with regulations. On 27 March 2023, the
Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC) is an Independent agencies of the United States government, independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures contract, fut ...
(CFTC) filed a lawsuit against Binance and Zhao in the United States District Court for the Northern District of Illinois, claiming willful evasion of US law and allegedly breaching derivatives rules. The agency accused Binance of breaking rules intended to thwart money laundering operations, pointing to internal communications describing transactions by Palestinian militant organization
Hamas The Islamic Resistance Movement, abbreviated Hamas (the Arabic acronym from ), is a Palestinian nationalist Sunni Islam, Sunni Islamism, Islamist political organisation with a military wing, the Qassam Brigades. It has Gaza Strip under Hama ...
, and suspected criminals, with the company's money laundering reporting officer allegedly remarking "we see the bad, but we close 2 eyes". In April 2023, three unidentified trading firms cited as VIP clients of Binance were revealed to be Radix Trading, Jane Street Capital, and Tower Research Capital. In June 2023, the SEC said it was suing Binance and Zhao on 13 charges for alleged violations of US securities rules. On 12 September 2023, Binance.US announced the resignation of CEO Brian Shroder and a reduction of the exchange’s workforce by around 100 positions, roughly one-third of its total staff. Binance.US cited the SEC’s civil suit as "an unfortunate example" of the agency's "aggressive attempts to cripple our industry". In October 2023, coinciding with the outbreak of the
Gaza war The Gaza war is an armed conflict in the Gaza Strip and southern Israel fought since 7 October 2023. A part of the unresolved Israeli–Palestinian conflict, Israeli–Palestinian and Gaza–Israel conflict, Gaza–Israel conflicts dating ...
, Binance and Tether were described as a source of terrorist funding by US senator Cynthia Lummis and US Representative French Hill, with a letter calling for the Department of Justice to crack down on the exchange. On 21 November 2023, Binance pled guilty to federal charges, of money laundering, unlicensed money transmitting, and sanctions violations. It was fined $4.3 billion. Zhao agreed to pay a $50 million fine and step down as CEO of the company, but was allowed to maintain his ownership as part of the deal. On 31 January 2024, Binance was sued by the US victims of the 2023 Hamas-led attack on Israel, as well as their families, in Manhattan federal court for allegedly facilitating
Hamas The Islamic Resistance Movement, abbreviated Hamas (the Arabic acronym from ), is a Palestinian nationalist Sunni Islam, Sunni Islamism, Islamist political organisation with a military wing, the Qassam Brigades. It has Gaza Strip under Hama ...
's terrorist activities by providing a funding mechanism for Hamas. The plaintiffs include released hostages of Hamas and families of victims who were killed in the attack. In April 2024, Zhao was sentenced to four months in prison after pleading guilty to violating US money laundering laws. In September 2024, Zhao was released from prison.


See also

* Bitfinex *
BTCC (company) BTCC is a cryptocurrency exchange established in June 2011. Originally known as BTC China, the exchange underwent significant restructuring after it was acquired by a Hong Kong–based blockchain investment fund in 2018, ceasing operations in Ch ...
* Coinbase * Kraken * List of bitcoin companies


References


External links

* {{Cryptocurrency exchanges Bitcoin companies Bitcoin exchanges Blockchain entities Chinese companies established in 2017 Cryptocurrency exchanges