The CEO of Binance, Changpeng Zhao has denied rumors that Interpol issued a public red notice for him. Recall that the notice allegedly issued by the international police has been circulating online. Now, in a Twitter post on his verified handle, the CEO debunked the notice, saying it is a PS photo.
Meanwhile, Zhao advised people to ignore the FUD source. A background check on Interpol website by Binbits shows that the agency did not list a public red notice against the Binance CEO. This thus indicates that the ravaging notice against him is untrue.
It is noteworthy that rumor about the acclaimed red notice against Zhao comes barely a week after the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its top executives. The agency alleged that the firm runs an “illegal exchange” and a fake compliance system. As found in the filing, CFTC charged Zhao and a former Binance compliance executive, Samuel Lim with “willful evasion” of the US law. It claimed the duo initiated a “calculated strategy of regulatory arbitrage to their commercial benefit.” Citing numerous Reuters reports, the agency accused the Binance CEO of instructing his employees and customers to ignore compliance measures.
Controversies trailing the compliance system of Binance
Since late 2022, controversies have trailed the compliance policies of the exchange. The whole saga started after Reuters in its report, claimed Zhao asked employees of Binance subsidiary in US to register users with disregard for anti-money laundering laws. Prior to this revelation by the media, the exchange was already facing a probe by Justice Department over possible violation of Bank Secrecy Act. Amid the probe, Binance reportedly exited the U.S market, citing regulatory challenges.
But, Reuters, in its report, claimed the exchange still offer services to US residents, particularly its VIP customers. According to the report, Binance allegedly taught these VIP customers on how to compromise its compliance system. The report further that the exchange processed over $10 billion for individuals seeking to evade U.S sanctions. Banking on the revelations in the Reuters report, CFTC accused Binance of enhancing money laundering.
A few hours after the news of the lawsuit dominated the airspace, Zhao reacted. The Binance CEO described the accusations by CFTC as an incomplete recitation of facts. He asserted that the exchange blocked all US users from its services. Zhao also debunked the report that he allowed the registration of users without the conduct of money laundering checks.