Japanese crypto exchange Fisco sued Binance for helping laundering of more than $ 9 million of stolen Bitcoin from 2018 hack

Recently, the Japanese crypto exchange Fisco filed a lawsuit against Binance in U.S. court, alleging that Binance facilitated criminals to launder dirty money, totaling more than $ 9 million in cryptocurrency losses.

Fisco sued Binance for helping laundering of more than $ 9 million of stolen Bitcoin from 2018 hack

Yesterday, Fisco filed a 33-page complaint with California’s Northern District Court, arguing that Binance’s “loose” KYC policies have allowed cybercriminals to convert stolen cryptocurrencies from Zaif exchange into other cryptocurrencies or cash. It is known that Fisco is the owner of the Zaif exchange.

Zaif was hacked in September 2018, costing around $ 63 million in cryptocurrencies, including Bitcoin, at that time.

Fisco’s complaint states:

“The hackers who hacked Zaif eventually laundered about 1,451.7 Bitcoins through the Binance exchange. The amount of Bitcoin laundered was valued at around $ 9.4 million at the time. Today it is worth more than $ 15 million.”

Binance’s KYC and anti-money laundering (AML) protocols are “surprisingly loose and not measured by industry standards,” Fisco said. Specifically, Fisco said, Binance’s KYC policy allows new users to open accounts and trade on the exchange for under two Bitcoins without providing any identifying information.

The complaint states:

“The thieves divided the stolen bitcoins into thousands of separate transactions and accounts, all worth less than 2 Bitcoins … In short, Binance serves as both a storage and where criminal funds are transmitted.”

Fisco went on to say that Zaif contacted Binance employees shortly after the hack and asked them to freeze transactions and accounts related to stolen Bitcoins, but “Binance intentionally or unintentionally did not stop. money laundering when it is possible to do so. ”

Zaif is currently asking the court for trial and demanding more than $ 9 million in damages from Binance. They assumed that it was fair compensation for the time and money they spent to track down the property.

As for the jurisdiction of the case, California, Zaif said:

“A significant portion if not all of the AWS (Amazon Web Services) servers that Binance relies on for its operations are located in the State of California. Besides, Binance has recruited and continues to recruit many executives. in San Francisco and elsewhere in California.”

At the moment, Binance has declined to comment on the complaint. Let’s wait and see what new moves this exchange will take soon!

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