Binance Sues WSJ, Panicked By Gov't Probes Into Sanctioned Crypto Transfers (arstechnica.com) 34
An anonymous reader quotes a report from Ars Technica: Binance is hoping that suing (PDF) The Wall Street Journal for defamation might help shake off a fresh round of government probes into how the cryptocurrency exchange failed to detect $1.7 billion in transfers to a network that was funding Iran-backed terror groups. The lawsuit comes after a Wall Street Journal investigation, based on conversations with insiders and reviews of internal documents, reported that Binance had quietly dismantled its own investigation into the unlawful transfers and then fired compliance staff who initially flagged them.
Alleging that the report falsely accused Binance of retaliation -- among 10 other allegedly false claims -- Binance accused the Journal of conducting a "sham" investigation that intentionally disregarded the company's statements. That included supposedly failing to note that Binance had not closed its investigation into the unlawful transfers. Binance's role in the large-scale violation of US sanctions laws is currently being investigated by the Justice and Treasury Departments. Congress members also took notice, including Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Permanent Subcommittee on Investigations (PSI), who launched an additional inquiry. In a letter to Binance CEO Richard Teng, Blumenthal cited the Journal's report, as well as reporting from The New York Times and Fortune, while demanding that Binance explain how it managed to overlook the money-laundering for so long and why compliance staff members were fired.
In its complaint Wednesday, Binance claimed that these probes may "be just the tip of the iceberg" if the record is not corrected. The reputational harm is particularly damaging, the exchange noted, since Binance has allegedly worked hard to strengthen its compliance after reaching a settlement with the US government in 2023. In taking that plea deal, Binance admitted to violating anti-money laundering and sanctions laws and paid a $4.3 billion fine, and its founder, Changpeng Zhao, eventually pled guilty to a related charge. Since that scandal, Binance claimed that the WSJ has "made a business of maligning both the cryptocurrency industry generally and Binance specifically." That's why the Journal allegedly rushed to publish its story following a similar New York Times investigation. Alleging that the WSJ was financially motivated to publish a negative story that would get more clicks, Binance claimed the Journal provided little time to respond and then failed to make necessary corrections before and after publication.
Alleging that the report falsely accused Binance of retaliation -- among 10 other allegedly false claims -- Binance accused the Journal of conducting a "sham" investigation that intentionally disregarded the company's statements. That included supposedly failing to note that Binance had not closed its investigation into the unlawful transfers. Binance's role in the large-scale violation of US sanctions laws is currently being investigated by the Justice and Treasury Departments. Congress members also took notice, including Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Permanent Subcommittee on Investigations (PSI), who launched an additional inquiry. In a letter to Binance CEO Richard Teng, Blumenthal cited the Journal's report, as well as reporting from The New York Times and Fortune, while demanding that Binance explain how it managed to overlook the money-laundering for so long and why compliance staff members were fired.
In its complaint Wednesday, Binance claimed that these probes may "be just the tip of the iceberg" if the record is not corrected. The reputational harm is particularly damaging, the exchange noted, since Binance has allegedly worked hard to strengthen its compliance after reaching a settlement with the US government in 2023. In taking that plea deal, Binance admitted to violating anti-money laundering and sanctions laws and paid a $4.3 billion fine, and its founder, Changpeng Zhao, eventually pled guilty to a related charge. Since that scandal, Binance claimed that the WSJ has "made a business of maligning both the cryptocurrency industry generally and Binance specifically." That's why the Journal allegedly rushed to publish its story following a similar New York Times investigation. Alleging that the WSJ was financially motivated to publish a negative story that would get more clicks, Binance claimed the Journal provided little time to respond and then failed to make necessary corrections before and after publication.
Hamas, Hezbollah, al-Qaeda, ISIS. (Score:2)
SDNY, which dismissed the case, found that while Binance was plausibly aware of its role in terrorist financing, the plaintiffs failed to show a definable nexus between the exchange’s conduct and the specific attacks that injured them. The plaintiffs can file again, though.
I'm surprised that Slashdot didn't name the terrorist groups.
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From the summary: "$1.7 billion in transfers to a network that was funding Iran-backed terror groups"
> Hamas, Hezbollah, al-Qaeda, ISIS ... I'm surprised that Slashdot didn't name the terrorist groups.
ISIS ?
"ISIS and Iran are staunch enemies. They are separated by deep ideological, religious, and political divides: Iran is a Shia-led power, while ISIS is a Sunni extremist group that considers Shiites apostates." - Gemini
"Islamic State Claims Responsibility for Deadly Bombings in Iran - The group, which h
CEO Changpeng Zhao given pardon in 2025 (Score:4)
What the actual...Crypto generally is used by criminal orgs to move money around. But in this case you've got billions of dollars going to Iran and it's terrorist proxies.
Binance's CEO was charged with overseeing money laundering in 2023/2024...but then given a presidential pardon six months ago.
And now US troops and allies are facing down the kinetic weapons that plausibly have been enabled by Binance's crypto-money laundering.
Is there anyone in Washington DC paying attention to anything any more?
Re: CEO Changpeng Zhao given pardon in 2025 (Score:5, Interesting)
https://www.bbc.com/news/artic... [bbc.com]
Trump added that he did not recall meeting Zhao and had "no idea who he is", only that he had been told that the businessman was a victim of a "witch hunt" by the administration of former US President Joe Biden.
During the interview, Trump also discussed his support for cryptocurrencies and said that the US had to make sure it was a leader in the industry or risk China and its rivals gaining an advantage in the emerging technology.
You enjoying that $5 gas?
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I mean... yes... because I'm not a brain washed person who can think independently...
Re: CEO Changpeng Zhao given pardon in 2025 (Score:2)
i'm pretty sure Trump has also quoted Biden being incompetent and just signing, whatever was put in front of him. Sounds very similar.
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TDS detected!
Cry more, liberal!
Would you care to rationally explain how Trump is involved in this story?
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Now now, be fair. If he can't shout nonsensical political slogans at people, he can't participate because he doesn't know how.
We're all striving to be inclusive!
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Is there anyone in Washington DC paying attention to anything any more?
Epstein files. Unredacted. Including photos.
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Actually, I've no opinion about Trump's relationship with Epstein. I despise Trump for other reasons, so I haven't bothered to look at *that* evidence.
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But you can't deny that they are useful for diverting attention from the actual issues. Regardless of what your politics are.
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While these particular crimes are not what I would choose to focus on, many would say government officials committing crimes with impunity is, in fact, "the actual issue" of our time.
They did an exhaustive internal investigation... (Score:4, Funny)
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Can you point out the TDS in the story?
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Probably not. They tend to scream READ THE TRANSCRIPTS, but when asked if they, themselves, read the transcripts, the answer is no. Honestly kind of like Christians and the Bible.
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TDS is when you think that man cares about you, or has something for you.
It's a similar affliction to battered wife syndrome, as Marjorie Taylor Greene pointed out. They just keep coming back.
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Nice TDS-article from arstechnica. Written by Ashley Belanger that only seems to write negative pieces involving trump or elon musk.
It's a defamation suit and obviously the DOJ wouldn't back down because of it.
Never liked Binance, they're probably guilty, but the WSJ-piece and this Arstechnica-article stinks.
So there's something there, there, and the DOJ is investigating, and the defamation suit is bullshit, but something something WSJ TDS.
You're concerned Trump's own DOJ is about to embarrass him, and it's ... the media's fault. That's how maga brain rot works, funny.
again, slowly, for the people in the back (Score:4, Insightful)
CRYPTO IS FOR CRIME
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HODL (Score:2)
Crypto... (Score:3)