U.S. Treasury: Binance grants VIP users the privilege of receiving advance notice when under investigation by law enforcement

2023-11-22 10:17:21

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ChainCatcher news, according to the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), Binance's VIP users are granted a range of special privileges, including receiving advance notice when subject to law enforcement investigations. According to FinCEN's description, Binance VIP team members are instructed to contact the users under investigation "by all available means," including sending text messages and making phone calls to notify customers, for example, that their accounts have been frozen or unfrozen.

In response, FinCEN warned Binance VIP team staff not to be too obvious in their prompts. The company told the VIP team: "According to FinCEN's orders, we must not give a strong hint or directly ask users to run/exit under any circumstances, otherwise we will be prosecuted or held personally liable. For instance, saying your account has been unlocked/your account has been investigated by XXX is usually a sufficiently obvious serious hint."

According to FinCEN, Binance's internal reports indicate that in 2019, VIP customers "accounted for two-thirds to three-quarters of Binance's trading volume and trading revenue," adding that "therefore, Binance has significant commercial motivation" to go all out to support these VIP users. "Although the rules prohibit U.S. persons from trading on the platform, U.S. users "represent an important part of the VIP user group," sometimes accounting for 20% of the trading fees on the exchange platform.

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