Japanese company Fisco Cryptocurrency Exchange, Inc. has just sued Binance Holdings Ltd., accusing it of allowing the laundering of the cryptos stolen from the exchange Zaif in 2018. Fisco wants to receive a compensation from Binance that will be determined by the courts, Finance Magnates has reported.
Fisco acquired Zaif back in 2018 shortly after the platform was hacked. Over $9M in stolen assets were moved to Binance, the company said. The company says experts tracked the movement of the $63M stolen to a single address. Subsequently, 1,451.7 BTCs were sent to Binance:
"There is a simple reason why the thieves laundered the digital loot they stole through Binance: despite being one of the world’s largest cryptocurrency exchanges, Binance’s 'know your customer' and anti-money laundering protocols are shockingly lax and do not measure up to industry standards."
The plaintiff also claims Binance was aware of the transfer of the stolen funds to its wallets and could have blocked it:
"Binance could have done so before some or all of the stolen cryptocurrency left the Binance exchange, but it did not do so. Binance either intentionally or negligently failed to interrupt the money laundering process when it could have done so."
According to Fisco, Zaif and its customers suffered financial losses as a result of Binance's lack of action.
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