Forbes revealed that a former Binance investigator said management ignored an investigation involving Iran-linked accounts.
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AT A GLANCE
A former Binance investigator said investigations into Iranian accounts were ignored by management; Binance denies violations, and no charges have been brought so far.
Article
Forbes: Former Binance Investigator Told IRS That Management Ignored Internal Investigation Into Iran-Linked Accounts
PANews November 9 news, according to Forbes, a previously undisclosed search warrant shows that a former senior financial crime investigator at Binance told the U.S. Internal Revenue Service (IRS) during questioning in May of this year that Binance management ignored calls to launch an internal investigation (codenamed "Operation Loclock") into approximately 2000 accounts suspected of being used by persons inside Iran and involving about 1200000000 USD in fund flows. The investigator had previously been suspended along with several colleagues for investigating two accounts suspected of violating U.S. sanctions by transferring funds to Iran, and subsequently left the company. The investigator has now received a subpoena to testify before a federal grand jury in Washington, D.C. Binance responded that it did not violate Iran sanctions, that the relevant investigators were dismissed in accordance with company rules for violating the company's data privacy policy, that the investigation into the relevant accounts was never closed, and that the company will fully cooperate with law enforcement authorities. No charges have been filed in the investigation so far.
According to Forbes, a previously undisclosed search warrant shows that a former senior financial crime investigator at Binance was interviewed by the U.S. Internal Revenue Service in May of this year.
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The investigator said that Binance management ignored calls to launch an internal investigation into approximately 2000 accounts suspected of being used by individuals inside Iran, involving the flow of about 1200000000 USD in funds.
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The related internal investigation is codenamed "Operation Loclock."
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The investigator had previously been suspended, along with several colleagues, for investigating two accounts suspected of violating U.S. sanctions by transferring funds to Iran, and subsequently left the company.
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The investigator has received a subpoena to testify before a federal grand jury in Washington, D.C.
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Binance responded that it did not violate Iran sanctions, and that the relevant investigators were dismissed in accordance with company rules for violating the company's data privacy policy.
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Binance stated that the investigation into the relevant accounts has never been closed, and it will fully cooperate with law enforcement authorities.
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No charges have been filed in the investigation so far.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is a report concerning sanctions compliance and an internal investigation. Former investigators allege that Binance management did not respond to their calls for an investigation; Binance denies violating sanctions and states that the investigation has not been closed. The two sides' accounts differ, and there are currently no charges.
Why it matters to readers
The incident involves approximately 2000 suspected accounts and approximately 1200000000 USD in fund flows, and also involves US sanctions on Iran and Binance's internal compliance handling, so whether subsequent law enforcement investigations reach a conclusion is worth watching.
Novices should distinguish between "the investigator's allegations," "Binance's response," and "formal conclusions by law enforcement agencies"; currently, there are only conflicting accounts, with no charges filed.
Risks and unknowns
The original search warrant and its complete contents were not presented in the evidence.
The former investigator's claims that management ignored the investigation have not yet been confirmed by law enforcement conclusions.
Binance's claims that it did not violate sanctions, that the investigation was never closed, and the reasons for the dismissals have not yet been confirmed by an independent conclusion.
It is not yet clear whether the IRS or a federal grand jury will subsequently file charges.
The evidence does not indicate whether the fund flow of approximately 1200000000 USD constitutes an illegal transaction.
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Related concepts
The Internal Revenue Service (IRS)
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