Binance Severs Ties with Advanced Cash Amid Money Laundering Investigation
One month after exiting the Russian crypto market, Binance is now on the brink of terminating its relationship with its last Russian payment firm, Advanced Cash or Advcash. The move comes as the Department of Justice (DOJ) investigates potential money laundering activities, with Advcash suspected to have facilitated Binance’s operations in Russia.
Binance Continues To Lose Payment Partnerships
According to sources familiar with the matter and messages received by a user, Binance is preparing to end its collaboration with a payment company that allowed clients to transfer funds from sanctioned Russian banks to the crypto exchange. The Wall Street Journal previously reported on Binance’s use of Advcash to help Russians send money out of the country.
In 2019, Binance announced its partnership with Advcash, enabling customers to transact in rubles. However, representatives from Advcash claim they have not been informed of any changes regarding their ongoing partnership with Binance.
The termination of the relationship with Advcash follows Binance’s decision in September to exit the Russian market and sell its operations to Commex. This has raised questions about Binance’s use of sanctioned banks and its level of control over Commex after the sale.
Several Binance Executives Depart
In recent months, numerous top executives have left Binance as part of cost-saving measures and preparations for potential business downturns. The exchange has also laid off approximately 1,500 staff members. Despite being a prominent name in the crypto industry, Binance’s leading position has been declining.
By October 2023, trading volumes on Binance had dropped to 50%, a significant decrease from 74% in December 2022. This decline occurred even as Bitcoin’s price rose to $34,000 and competitor OKX experienced a market presence growth of over 50%.
In addition to these challenges, Binance has faced legal troubles in multiple countries. The exchange has lost its right to operate in certain European jurisdictions and is under scrutiny in the US, France, Brazil, and the UK. Allegations against Binance include money laundering, dealing with unregistered securities, and non-compliance with regulations related to Russia. France is particularly investigating the exchange for operating without the proper license and serious money laundering allegations.
These issues have taken a toll on Binance’s CEO, Changpeng Zhao. His wealth has plummeted from $96.6 billion at the beginning of 2023 to just $17.2 billion by October 2023.
Hot Take: Binance Faces Mounting Challenges Amidst Legal Scrutiny
Binance’s recent termination of its relationship with Advcash further highlights the ongoing legal troubles faced by the crypto exchange. As investigations into potential money laundering activities continue, Binance’s reputation and market position have been significantly affected.
The departure of several top executives and declining trading volumes have raised concerns about Binance’s future prospects. Additionally, legal issues in various countries have resulted in restrictions on its operations and accusations of illicit activities.
With the CEO’s wealth also taking a massive hit, it remains to be seen how Binance will navigate these challenges and regain trust within the crypto community.
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