Binance Ends Partnership with Advance Cash as U.S. Investigation Continues
Crypto’s largest centralized exchange, Binance, has reportedly decided to terminate its partnership with payment processor Advance Cash. The Belize-based company facilitated ruble transactions for Binance users, allowing them to move funds from sanctioned Russian banks. However, Binance sent an email to a client stating that it would be ending its agreement with Advance Cash. The exchange has been cutting ties with several payment processors across Europe and the Americas amid an ongoing investigation by the U.S. Department of Justice. The investigation is looking into potential money laundering, sanction evasions, and fraud at Binance. In response, Binance has suspended P2P transactions with sanctioned banks in Russia and is migrating users to its local subsidiary CommEx.
SEC Lawsuit and Geo-Blocking
In addition to the ongoing investigation, Binance is also facing a lawsuit from the Securities and Exchange Commission (SEC) for alleged violations of federal securities rules. Binance Global, Binance.US, and CEO Changpeng Zhao are named in the lawsuit, which they have asked the courts to dismiss. Meanwhile, some crypto companies and protocols have geo-blocked Russian users due to sanctions imposed by the Treasury Department Offices of Foreign Asset Control (OFAC). Wallet Connect, for example, has implemented temporary restrictions for Ukraine and cited OFAC’s directives in relation to Russia.
Hot Take:
Binance’s decision to end its partnership with Advance Cash is another blow amid ongoing investigations and legal challenges. As the largest centralized exchange in the crypto industry, Binance is under scrutiny for potential misconduct such as money laundering and fraud. The termination of this partnership suggests that Binance is taking steps to distance itself from any association with questionable activities. However, it remains to be seen how these developments will impact Binance’s reputation and regulatory standing in the long run. The crypto community will be closely watching as the investigations and legal proceedings unfold.
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