Binance the world most largest cryptocurrency exchange may be in trouble, a Japanese exchange firm dubbed Fisco sued the "CZ" firm for allegedly facilitate a $9M in laundering funds, the ones stolen in a hack on the their company back in 2018.
At the time the Zaif crypto exchange (which Fisco is the owner) lost $63 million in customers funds part of them allegedly was sent to Binance, and the Japanese firm using legal methods contacted the ChangPeng Zhao "CZ" firm to freeze those funds, but the support negligently or intentionally failed to stop the launder and eventually all assets worth $9M was converted in other crypto or Fiat and cashed out by criminals.
The Japanese firm opened the case in a U.S court as they this Monday, and support their accusation based in Blockchain analytic company and stats basically the KYC (know your customer) policy, that Fisco consider weak and poorly doesn't comply with a serious company and allowed that hackers create new accounts and send to Binance considerable quantities of Bitcoins stolen in Zaif (Binance policy doesn't necessarily need KYC for values below 2 BTC) and that's what Fisco is using against the CZ firm!
The cyber criminals used that policy to exchange more than 1,450 Bitcoins worth at time $9M, and now want CZ to pay that amount in actual prices of market and with interest!
If this go thru the Fisco could earn some good money and also make the biggest exchange in the world (centralised) to review their policy of KYC, I am actually support it, as I understand that no know your customer (KYC) may be important to exchange my assets, does why I only use DEX (opened for discussions...) and I am willing to see how this ends.
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Find also the article on my blog.