As a seasoned researcher with a focus on legal matters, I find myself deeply troubled by the ongoing saga of the alleged misallocation of funds from Binance’s settlement with US government agencies. My personal experience in investigating similar cases has taught me that transparency and adherence to established laws are paramount in maintaining public trust.
Four U.S. residents have initiated a legal action against several federal departments, which include the Department of Justice (DoJ), on charges that they mismanaged the $4.3 billion payment obtained from Binance in November 2023.
The plaintiffs claim that these entities – the Department of Justice (DOJ), Commodity Futures Trading Commission (CFTC), U.S. Attorney General Merrick Garland, Treasury Department, its agencies Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) – collectively neglected to provide clear instructions on how to distribute the settlement money towards the correct department, specifically the Victims of State Sponsored Terrorism Fund.
Alleged Misallocation of Funds
In a federal court in Washington D.C., a lawsuit asserts that, according to the Victims of State Sponsored Terrorism Act, any criminal profits and a substantial part of civil earnings from cases similar to Binance’s ought to be directed towards a designated fund.
On the other hand, the plaintiffs – Michael Grover Coe, Joseph Paul Englehardt, Andre Lynn Twin, and Yvonne Dora Wade – claim that since the settlement in November, the defendants have only contributed approximately $898.6 million to the fund.
Rather than channeling $1.5 billion into the State Sponsored Terrorism Fund, government entities are considering reallocating these funds into a distinct Victims of Crime Fund instead. They contend that such a shift contradicts federal legislation.
As an analyst, I’ve been examining the Victims Fund, a resource created to provide compensation to victims and their families who have suffered at the hands of terrorists, such as Iranian abductors, hostage-takers, and bombers. According to data from the Department of Justice’s website, this fund has distributed approximately $6 billion since its inception.
Four American individuals are working diligently to make sure that the government takes appropriate actions to help more families and victims in need.
Plaintiffs Demand Proper Allocation
The lawsuit seeks a court order requiring the DOJ and other defendants to deposit all eligible Binance settlement proceeds into the Victims Fund.
In 2023, Binance acknowledged all accusations made by the DOJ and other regulatory bodies, which encompassed breaches of U.S. sanctions and the International Emergency Economic Powers Act (IEEPA). As part of this settlement, the company consented to pay over $4.3 billion in penalties and forfeitures.
According to reports, Changpeng Zhao (CZ), founder of Binance, acknowledged a felony charge connected to the Bank Secrecy Act. Authorities claim that CZ neglected to establish adequate anti-money laundering safeguards on the platform, potentially allowing illicit actors to wash their funds through Binance.
In connection with his arrangement with U.S. authorities, he consented to relinquish his CEO position, pay a penalty of $50 million, and spend four months in prison. The head of Binance was penalized in April and is anticipated to be discharged from prison later this week on September 29.
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2024-09-26 12:27