Binance Fined $4.38 Million for Money Laundering Violations

The cryptocurrency exchange Binance is facing hefty fines and legal battles in both Canada and Nigeria for alleged violations of money laundering and terrorist financing laws. In Canada, the Financial Transactions and Reports Analysis Centre (FINTRAC) imposed a fine of nearly C$6 million on Binance for failing to register as a foreign money services business and not reporting large virtual currency transactions. This news comes after Binance’s former CEO was sentenced to prison in the U.S. for money laundering violations.

In Nigeria, Binance is embroiled in a $35 million money laundering case, with the government accusing the platform of diversionary tactics and blackmail. Binance’s CEO, Richard Teng, claimed that Nigerian officials sought a bribe in cryptocurrency from its executives before their detention, leading to a war of words between the company and the government.

The situation escalated when two senior Binance executives were detained in Nigeria, prompting the exchange to halt trading of certain cryptocurrencies. The ongoing legal battles and controversies surrounding Binance highlight the challenges faced by cryptocurrency exchanges in navigating regulatory frameworks and compliance requirements.