As the cryptocurrency market consolidates as a financial alternative, measures against exchanges emerge and this time Binance and its former CEO are facing a new class action lawsuit that tarnishes the progress of the market.
The truth is, Binance's former CEO Changpeng Zhao (CZ), “are facing a new class action lawsuit filed by three cryptocurrency investors who claim they were unable to recover their stolen assets because the exchange failed to prevent money laundering.”
It has been stated that, “In a lawsuit filed in the U.S. District Court for the Western District of Washington, Seattle, the plaintiffs allege that their cryptocurrencies were stolen and that those funds were sent to Binance by thieves to eliminate the connection between the ledger and their digital assets, making them untraceable”
Namely, “Plaintiffs argued that a key feature of cryptocurrency transactions is a permanent record of those transactions on the blockchain, which makes them permanently and accurately traceable.”
Finally, “Therefore, without a place to launder crypto, such as Binance.com, if a malicious actor steals someone else's cryptocurrency, there is a risk that authorities will eventually track them by retracing their steps on the blockchain,” the class action lawsuit alleges.”
SOURCES CONSULTED
Cointelegraph. CZ and Binance face new lawsuit for alleged laundering of stolen crypto. Link
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The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
