The crypto world is reeling from a new lawsuit against Binance.
Binance and its former CEO Changpeng “CZ” Zhao are now facing a fresh class-action lawsuit, filed by three crypto investors who claim that they were unable to recover their stolen assets due to Binance’s failure to prevent money laundering.
The lawsuit, lodged on August 16 in the U.S. District Court for the Western District of Washington, Seattle, alleges that the plaintiffs’ crypto was stolen and transferred to Binance by the thieves. The criminals reportedly used Binance to obscure the trail between the stolen assets and their original digital wallets, making it impossible to trace.
As per crypto market latest news, the plaintiffs argue that one of the defining features of blockchain technology is the creation of a permanent and transparent record of all transactions, which should, in theory, make stolen assets traceable. They claim that without a platform like Binance to launder the stolen funds, it would be much easier for authorities to track down the thieves by following the blockchain trail.
According to the lawsuit, Binance played a crucial role in the money laundering process, an action that the plaintiffs believe violates the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Bill Hughes, senior counsel and director of global regulatory matters at Consensys, expressed skepticism about the lawsuit’s ability to prove these allegations. In a post on August 20, Hughes described the lawsuit as a “natural, predictable follow-on civil action” that seeks to build on ongoing government prosecutions.
Despite his doubts, Hughes noted that the case puts Binance in a difficult position and could have significant implications for the entire crypto industry if it proceeds to trial.
Hughes also pointed out that if the case advances, it could put the efficacy of blockchain analytics and on-chain asset recovery under intense scrutiny.
This lawsuit comes on the heels of some exciting developments from Binance. The $DOGS token recently achieved a major milestone with its official listing on Binance Launchpool. According to the announcement on the project’s Telegram channel, the Launchpool listing allows users to earn and stake $DOG.
