The world's largest cryptocurrency exchange Binance and its former CEO Changpeng Zhao (CZ) are facing a new lawsuit over alleged money laundering.
This class action lawsuit was filed by three cryptocurrency investors who claim they have been unable to recover stolen assets due to Binance’s failure to prevent money laundering.
Binance and CZ were sued collectively in Seattle federal court last Friday over allegations that Binance’s money laundering practices harmed consumers, Consensys legal counsel Bill Hughes said.
New Lawsuit Against Binance and CZ!
Bill Hughes recently revealed in his X-post that Binance and its former CEO CZ are facing a class action lawsuit in Seattle Federal Court.
The lawsuit alleges that Binance was aware of and partially encouraged the laundering of cryptocurrencies stolen from U.S. consumers in various hacks and thefts.
The plaintiffs say Binance was a significant part of the money laundering process, was aware of the process but was negligent and failed to prevent money laundering, which violated the Racketeer Influenced and Corrupt Organizations (RICO) Act.
“The brief of the case is as follows: These plaintiffs and the U.S. consumer class they represent had cryptocurrencies stolen in hacks and other thefts, and those funds were sent to Binance for money laundering, which Binance was aware of and, to some extent, promoted as a lucrative business model. The plaintiffs say this harms them because Binance was a significant part of the money laundering and constitutes unlawful extortion in violation of the RICO statute.”
Bill Hughes, who stated that it was “questionable” whether these allegations in the case could be proven, said that the case put Binance in a “difficult position” and that if the case were filed, it could have significant consequences for the cryptocurrency industry.
👀🚨👀🚨 @binance and @cz_binance were sued last Friday by class plaintiffs in Seattle federal court. An interesting class action brought by top class action lawyers alleging consumer harm as a result of Binance's money laundering. And the natural, predictable follow-on civil… pic.twitter.com/vMlFuUnzEr
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) August 20, 2024
*This is not investment advice.
