Binance sued for allegedly facilitating money laundering with 'lax KYC'

Fisco is accusing Binance of helping launder $9 million in cryptocurrency, and is seeking compensation for these alleged losses.

The plaintiffs maintain that Binance had the power to identify and stop the stolen assets due to the traceable nature of blockchain.

A further argument is that Binance uses California-based custodians for cold storage.

This claim comes from reports that Binance-acquired Swipe uses Coinbase and BitGo, while FTX - where Binance is just an investor - reportedly uses Coinbase.

There are no indications as to which service is used by Binance itself, and it may well be developed in-house.

Finally, other arguments include the presence of job postings and employees in San Francisco, though most of them are related to Trust Wallet, a company acquired by Binance.

Binance is notoriously hard to pin down, which makes it difficult to sue.

Fisco is accusing Binance of several counts of crimes related to facilitating money laundering, seeking the return of 1,457 Bitcoin that was allegedly laundered through Binance, plus punitive damages and legal expenses.

The plaintiffs are also accusing Binance of unfair competition due to its "Lower than standard" Anti-Money Laundering practices.

Binance did not immediately respond to a request for comment.