TechFlow news — according to U.Today, Binance and its former CEO Changpeng Zhao faced a new class-action lawsuit last Friday in federal court in Seattle. The lawsuit accuses the defendants of breaking the law for profit by allowing bad actors to make funds untraceable through the platform, thereby generating substantial gains.
The plaintiffs claim Binance served as a repository for illicit funds originating from hacking, theft, malware, and ransomware attacks.
The lawsuit describes Binance as an "encryption money laundering empire," alleging it maximized revenue by collaborating with criminals, thieves, and sanctioned users.
Legal expert Bill Hughes said this lawsuit attempts to leverage government prosecutions and enforcement actions, noting that the plaintiffs are well-funded and represented by highly qualified attorneys. The plaintiffs allege Binance's conduct constitutes illegal racketeering under the RICO Act.
Last November, Zhao admitted guilt to money laundering violations and resigned as CEO. In late April this year, he was sentenced to four months in prison and began serving his term in early June.
