Binance Employees Trained Users to Bypass KYC and AML Rules
According to an investigation, a group of Binance employees and “angels” helped users evade the exchange’s KYC and AML controls. On March 23, CNBC reported that a group of Binance angels shared techniques that allow users to bypass the platform’s KYC, residency, and verification systems. According to CNBC, a number of Binance employees and “angels” (volunteers trained by the exchange to promote its use).
The report also revealed that many users in China were able to access Binance’s services despite the country’s ban on cryptocurrency exchanges since 2017 and the use of digital assets since 2021. CNBC stated that “the techniques shared with and among customers also call into question the effectiveness of Binance’s anti-money-laundering efforts,” casting doubt on the exchange’s ability to ensure that its clients are not engaged in illegal money laundering or terrorism financing activities. Likewise, several regulation experts, such as Sultan Meghji, professor and former Chief Innovation Officer at FDIC, expressed their concerns about Binance’s.