Binance prerequisites for lax KYC are causing legal issues for the crypto exchange. The KYC conditions are being attacked by the present CEO of a Japan-based exchange attacked two years ago.
Fisco, the crypto exchange that bought Zaif after it was hacked, filed a petition against Binance, pointing that its lax KYC prerequisite and the daily withdrawal limit contributed to the laundering $60M stolen from them.
They accused Binance of assisting in $9M worth crypto and is asking for compensation. Fisco stated that the exchange could prevent the assets from being stolen because blockchain transactions can be traced.
A part of the statement presented against the exchange explained why northern California is the perfect jurisdiction to sue the renowned exchange.
The first fact argued that California houses the exchange's sever because it uses Amazon cloud service. The statement explained that the server has extensive coverage that can be changed and claimed that most of its facilities could be found in the State.
Other facts explained that Binance uses Custodians in the western US state for cold storage. However, it's unknown if this evidence will convince the court as they seem not too substantial.
Source::
https://cointelegraph.com/news/binance-sued-for-allegedly-facilitating-money-laundering-with-lax-kyc
Source: Cointelegrah
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