Binance settled with the US Justice Department for over $4 billion for failing to implement proper anti-money laundering controls. They allowed terrorist groups like Hamas to use their services, with one employee joking that Hamas could barely buy an AK47 with the funds sent. The US government action shows that crypto regulation is necessary to prevent illegal uses of digital assets that can enable terrorist activities and harm many lives.

1. By: www.ProfitableInvestingTips.com

2. Binance has settled with the US Justice
Department for more than $4 billion. They
have also agreed to strict monitoring and to
abide by money laundering rules. Their boss
is paying a $50 million fine and stepping
down in return for not having to go to prison
or hide out forever in countries that do not
extradite to the USA. The problem that led to
all this was that Binance, and other crypto
exchanges, turned a blind eye to terrorist
organizations like Hamas using their services.

3. A comment by a Binance employee was that
one could barely buy an AK47 with what they
sent. So, how many AK47s did Hamas buy
with crypto and were they used in the attack
on Israel that killed over a thousand people
and caused Israel’s retaliatory invasion with
thousands of deaths?

4. When and Where Crypto Regulation Is
Necessary

5. There is a tendency for folks working in financial
arenas to focus on profits to the exclusion of
everything else. When their efforts lead to
problems in the larger world they get sued or
government regulators show up and make their
lives difficult. The ones with money, a good
publicist, and no conscience downplay the
damage to the broader world. Or, as with
Binance, say repeatedly that they have been
doing everything humanly possible to comply
and that the government either does not get it or
is being malicious.

6. Regulation was necessary after banks foisted
subprime mortgages on millions of folks and
caused the Financial Crisis. Regulation was
seen to be necessary when the folks at FTX
defrauded customers and investors out of
billions of dollars. Now, the law and
regulatory force of the US government has
come down upon Binance and its founder.

7. It would be wonderful if one could see the
future and apply regulations that are just
enough to get the job done. It would be nice
to do this before problems occur. There are
two problems in this regard. Nobody sees the
future and anticipates potential problems. Or
the folks who are causing all of the problems
are calling the shots through their well-paid
Washington lobbyists, talking heads on
business shows, and op eds in influential
business publications.

9. Binance Enabled Illicit Actors

10. When announcing the deal that resulted in a
$4.5 billion fine for Binance, Attorney General
Merrit Garland noted that Binance chose to
funnel money to Hamas because it was
profitable. This was not about the laudable
goals at the beginning of crypto. It was not
about honest people wanting to avoid
middlemen siphoning off profits. It was not
about decentralization and a reasonable
amount of privacy in one’s financial dealings.

11. It was about greed, pure and simple. It was
about turning the fact that Binance knew who
they were dealing with into an inside joke. If
one needs to know why cutting off funding to
terrorists is important they only need to visit
the World Trade Center memorial in New York
or watch today’s news about a three-year-old
hostage hopefully being freed by Hamas
when the rest of her family was killed by
them.

12. The list of bad actors who moved funds via
Binance did not stop with Hamas but also
included Islamic Jihad, ISIS, and Al Qaeda. The
list of crypto exchanges that aided and
abetted terrorists does not stop with Binance
either. That is why regulation in this area is
necessary and not a laughing matter.

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investments and investing, visit
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