- Binance has declared untrue a report by the Wall Street Journal, which claims that it is still enabling Russians to move funds abroad through crypto transactions.
- The report claims that Binance still handles “substantial” Russian ruble trading volumes, helping clients transfer funds from sanctioned banks into balances on the platform via intermediaries.
- Binance’s spokesperson has denied the allegations, noting that there is no relationship with any banks in Russia or elsewhere about our P2P program.
Binance, the leading crypto platform, has denied the allegations of the Wall Street Journal report, which claims that it is still enabling Russians to move funds abroad through crypto transactions.
A WSJ report on August 22 alleged that the crypto exchange still handles “substantial” Russian ruble trading volumes, helping clients transfer funds from sanctioned banks into balances on the platform via intermediaries.
As proof of this claim, the WSJ mentioned the data taken from the Binance website, screenshots, and text in an official chat group.
Further, the report cited that Binance enables peer-to-peer trades of Russian rubles to cryptocurrencies that involve banks blacklisted in the U.S., including Rosbank and Tinkoff Bank. The report noted:
‘’ Via layers of intermediaries, clients can turn funds at sanctioned banks into balances at Binance. Binance also enables peer-to-peer trades of rubles for digital tokens that frequently involve banks on Western blacklists, company websites, user screenshots, and messages in official chat groups. ‘’
However, Binance’s spokesperson has denied the claims via Telegram, a social media messaging app. The spokesperson has alleged that the ‘’exchange has no relationship with any banks in Russia or elsewhere concerning our P2P program.’’ He stated:
‘’ Access to buying and selling USD & EUR on the Binance P2P platform for Russian citizens, as well as any individuals residing in Russia, regardless of nationality, is prohibited.’’
On the other hand, Russia conducted peer-to-peer transactions worth about $428 million every month between October and March, per the journal. Besides transferring funds, the WSJ reported that Russians could swap their fiat funds for digital currencies, especially dollar-pegged stablecoins such as USDT.
The report added that stablecoins can also be exchanged for rubles at foreign brokerages or added to other cryptocurrency wallets for payment.
Binance’s Tussle With Legal Issues In Courts
Binance had earlier imposed certain restrictions on Russian users in response to the sanctions imposed on Russia by the European Union. However, the exchange has recently lifted these restrictions and allowed Russian users to deposit funds using their bank cards issued in the country.
A recent analysis of Binance’s peer-to-peer service website indicated that Russian customers offered to buy or sell rubles for tether in potential deals worth almost $1 million on a single day in late July via Rosbank alone.
Nonetheless, if the report by WSJ is verified to be true, Binance would get into more legal issues with the U.S., which has been battling other crimes in court for a while now. According to a person familiar with the investigation, the U.S. Department of Justice is investigating Binance for possible U.S. sanctions against Russia violations, per a Bloomberg report.
On the other hand, the exchange and its CEO are facing a lawsuit filed by the Commodities and Futures Trading Commission in March. The lawsuit made several allegations, including that Binance intentionally assisted U.S. customers in getting around restrictions on cryptocurrency trading by Binance’s American affiliate.
According to WSJ, the ministry is also investigating Binance’s activities concerning suspected violations of anti-money laundering laws.
