U.S. Treasury Department: Binance gives VIP users the privilege of receiving advance notice when they are under investigation by law enforcement agencies

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) said Binance’s VIP users were granted a series of special privileges, including receiving advance notice when they are under investigation by law enforcement. According to FinCEN, the process is relatively simple, and Binance VIP team members are instructed to contact users under investigation through "all available means," including sending text messages and making phone calls to inform customers that their accounts have been frozen or unfrozen. In response, FinCEN warned Binance VIP team staff not to be too obvious in their prompts. Binance told the VIP team: “In accordance with FinCEN’s order, under no circumstances can we give a strong hint and directly ask users to run/exit, otherwise we will be sued or held personally liable. For example, if your account is unlocked /Your account has been investigated by XXX, which is usually an obvious enough sign of something serious." According to FinCEN, Binance’s internal reports indicate that VIP customers “consistently accounted for two-thirds to three-quarters of Binance.com’s trading volume and trading revenue in 2019,” adding that “therefore, Binance has significant Business Motives" goes out of its way to support these VIP users. Although rules prohibit Americans from trading on the platform, American users "represent a significant portion of the VIP user base," sometimes accounting for 20% of all trading fees on the exchange. (CNBC) Previously, Binance and its CEO CZ pleaded guilty to criminal charges of anti-money laundering and violating U.S. sanctions, including allowing transactions with terrorist groups such as Hamas, as part of a deal with the U.S. Department of Justice aimed at keeping the company safe. part of a comprehensive agreement to operate. Binance agreed to plead guilty and pay a fine of more than $4 billion. CZ agreed to resign and pay a $50 million fine as part of the settlement, which he pleaded guilty to in a Seattle courtroom on Tuesday. The agreement includes the participation of the U.S. Treasury Department and the Commodity Futures Trading Commission and ends a years-long investigation into the cryptocurrency exchange. The negotiated settlement will resolve all allegations of criminal misconduct.