Court Case: Zaif Exchange Vs. Binance - First Victory in the U.S.

As you may remember, the Fisco exchange sued Binance with allegations of "facilitating money laundering," the money that was stolen in 2018 from the Zaif exchange. The defendant in this financial mayhem was the infamous BINANCE HOLDINGS LTD (Cayman Islands). For Binance, facilitating money laundering and theft is not a new business, they have already done this with the assets of Cryptopia and btc-e (WEX) exchanges, the fate of these funds is still unknown and under the control of Binance.

Fisco claims that the attackers laundered 1,451 BTC through Binance. They were allegedly aided in this by the platform's weak KYC/AML measures, which "do not meet industry standards," including Binance employees facilitating this criminal activity, and/or even participating in it.

Fisco asks the court to recover more than $9 million from defendant BINANCE HOLDINGS LTD and "just compensation for the time and money spent searching for property," a perfectly reasonable claim and a perfectly reasonable claim with respect to Binance's activities. The plaintiff also claims that Binance knew about the transfer of the stolen cryptocurrency to its wallets and had the ability to freeze it.

Fisco argues that the case should go to court in California not only because the victims of the hacking reside in that region, but also because important parts of Binance's business are located in that U.S. state. For example, Fisco stated that Binance uses Amazon Web Services (AWS) to host its servers and has the ability to choose any AWS data center.



On August 13, 2021, the court began hearing the lawsuit and there are initial results:


 

An additional defendant becomes BAM Trading Services Inc. C4318587 (not just BINANCE HOLDINGS LTD).

 

So far, the court has found almost all of Zaif's exchange claims to be true, some of the minor ones dismissed. The court case is ongoing, but there is every chance that the Binance exchange will be found guilty.
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