Adam Cochran, a partner at CEHV and a notable figure in the cryptocurrency industry, has voiced serious concerns about Binance’s recent business dealings. Taking to the Twitter thread, Cochran alleged that Binance might have violated OFAC regulations.
He then dropped a bombshell by accusing the exchange of being involved in money laundering activities with Russian funds. This accusation came on the heels of its announcement yesterday that it was selling its Russian business to Commex.
As reported by TronWeekly:
The platform has set in motion an off-boarding process that will span up to one year to ensure a seamless transition for its existing Russian users. It emphasized that all assets belonging to current Russian users are entirely secure and protected throughout this transition period.
Cochran grew suspicious when he discovered that Commex, a relatively unknown entity, had a previous identity as a commerce credit card company until the early 2000s. His doubts intensified when he delved into the domain’s name server history and found recent updates, suggesting a hastily assembled operation.
Binance Cloud Raises Eyebrows
His investigation revealed that Commex was a new Seychelles-based company, seemingly running on Binance Cloud. It was particularly intriguing as Binance Cloud had ceased to exist in 2022, making Commex’s operations highly questionable. Moreover, Cochran discovered that Commex allowed users to log in using “Binance” as the primary call to action.
What added to the mystery was that Binance Cloud exchanges could share liquidity with Binance, as confirmed in its blog posts. It explained how Commex achieved a substantial trading volume on its first day of operation.
The situation raised several critical questions about the exchange’s intentions and practices, particularly its connection to the Russian market and the possible manipulation of cryptocurrency prices.
Cochran’s investigation also brought attention to the intricate network of operations involving its local “agents.” These agents played a significant role in bypassing KYC limitations imposed in sanctioned regions.
It remains to be seen how Binance will react to the increasing scrutiny surrounding its business practices and the allegations of its ties with Russian oligarchs and war criminals. The crypto industry is undoubtedly entering a phase of heightened vigilance and regulatory examination following these alarming accusations.
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