The plaintiffs argue that this failure allowed stolen assets to remain untraceable. Let’s discover more about this news for Binance.
Binance Faces Lawsuit Over Alleged Crypto Laundering
According to the plaintiffs, this failure contributed to the inability to trace and recover their funds. The lawsuit centers around allegations that thieves transferred stolen crypto assets to Binance to obscure the origin of the funds. The plaintiffs argue that this action undermines one of the core attributes of blockchain technology. The permanent and accurate traceability of transactions.
They contend that blockchain records should make it possible to trace stolen assets. However, the use of Binance allowed criminals to effectively erase the connection between the stolen assets and their source.
Source: X
Legal Expert Warns: Lawsuit Could Challenge Blockchain Analytics
The plaintiffs claim that without Binance’s role in laundering stolen funds, authorities could better track such assets. So, Binance argues that this would improve the recovery of stolen funds. They argue that this would be possible by retracing the steps on the blockchain.
They assert that Binance’s role violates the RICO Act, designed to combat organized crime. A legal expert has noted that if this class-action lawsuit progresses, it could put the “efficacy of blockchain analytics itself” on trial. A court case against Binance could challenge blockchain technology’s effectiveness in tracing stolen assets and raise questions about current tools for handling financial crimes.
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