The world’s largest crypto exchange, Binance, and its former CEO, Changpeng “CZ” Zhao, are facing a class-action lawsuit for allegedly aiding money laundering. Three crypto investors have accused the platform of allowing bad actors to obscure the digital trail of assets, making them untraceable and leading to the loss of stolen digital assets.
The lawsuit, filed in the United States District Court for the Western District of Washington, claims that Binance’s actions violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. The plaintiffs argue that without platforms like Binance facilitating money laundering, authorities could potentially track down stolen assets through blockchain technology.
Legal experts have expressed doubts about the lawsuit’s claims, but acknowledge that the case could have significant implications for the crypto industry. This lawsuit adds to Binance’s legal troubles, as Zhao previously pleaded guilty to violating US money laundering laws and resigned from the company as part of a settlement with the SEC.
The outcome of this latest lawsuit could have far-reaching consequences for Binance and the broader crypto industry. Stay tuned for updates on this developing story.
