Binance continues to violate Western sanctions - BNB hits a yearly low

Binance faces accusations of aiding Russians in transferring funds abroad, further complicating its legal situation amidst turmoil in the United States.

Despite sanctions, Binance allegedly facilitates fund transfers for Russians?
According to the latest findings from The Wall Street Journal, Binance has reportedly processed up to $8 billion USD in transactions for at least 5 Russian banks listed on the West's blacklist, including Tinkoff Bank and Rosbank.

Additionally, some volunteers known as Binance Angels have disclosed on Telegram that the exchange imposes no transaction restrictions on Russian customers.

Read more: What is Binance exchange?
A spokesperson for the exchange immediately refuted these claims:

"Binance complies with global sanctions against individuals, organizations, entities, and countries on the blacklist, refusing service to those actors and blocking access to the platform. Therefore, the exchange has no relationship with Russian banks or peer-to-peer trading entities, nor does it collaborate with partners in the traditional financial system under sanction."

These statements contradict Binance's previous announcements. Last April, the exchange closed numerous user accounts associated with Russian officials and restricted services to users with Russian citizenship, individuals, and organizations residing or conducting operations in regions holding over €10,000 in cryptocurrency assets. At that time, Reuters also accused Binance of providing user information to Russian authorities.

Since the outbreak of the Russia-Ukraine conflict, the volume of cryptocurrency transactions by Russian customers has surged dramatically as many seek alternative investment channels to safeguard assets amid severe depreciation of the ruble. Bitcoin and USDT prices in pairs with the Russian ruble have even reached ATHs.

In related developments, the U.S. Department of Justice is reportedly investigating Binance for potential violations of U.S. sanctions against Russia, according to Bloomberg sources.

However, this is not the first time Binance has been accused of circumventing U.S. sanctions. In July 2022, substantial evidence surfaced suggesting the exchange encouraged Iranian users to use VPNs to bypass regulatory oversight.

Legal struggles weigh heavily on Binance
The information shielding Russian users further alienates Binance from global regulatory authorities. Recently, the exchange has encountered consecutive setbacks in Europe, resulting in its withdrawal from markets in Germany, the United Kingdom, the Netherlands, Cyprus, and Austria.

On the other front, Changpeng Zhao's exchange is also grappling with challenges in North America, highlighted by lawsuits from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Meanwhile, the U.S. Department of Justice continues to weigh the indictment of Binance and its executives, fearing systemic repercussions across the entire market.

Under mounting legal pressure, key figures at the exchange have departed, alongside lost partnerships and severed agreements.

So, how is Binance Coin (BNB) faring amid all this turmoil?

BNB hits a yearly low
With all these factors considered, BNB seems trapped in its predicament. The market's fourth-largest cryptocurrency, with a market capitalization of $32 billion USD, is hitting yearly lows—hovering around $204 USD and at risk of dipping below $200 USD.

1D chart of BNB/USDT pair on Binance at 10:30 AM on August 23, 2023

These pressures are compounded by a loan on the BNB Bridge via Venus by hackers, adding further downward pressure on the coin's price. According to the latest confirmation from co-founder He Yi, BNB Chain is collaborating with Venus to cautiously unwind the loan, aiming to avoid market disruption.

The cryptocurrency market in the early hours of August 23 also experienced significant negativity, with Bitcoin dumping below $25,800 USD.