(Reuters) -Binance, one of the world's largest cryptocurrency exchanges, developed a plan to avoid the threat of prosecution by U.S. authorities as it started an American entity in 2019, the Wall Street Journal reported on Sunday. The report is based on messages and documents from 2018 to 2020 reviewed by The Wall Street Journal as well as interviews with former employees. Binance developers in China maintained the software code that supported Binance.US users' digital wallets, potentially giving Binance access to U.S. customer data, the WSJ reported. If U.S. regulators determine that Binance has control over its U.S. entity, they could claim the power to police Binance's entire business. Reuters has reported that Binance.US was created as a de facto subsidiary in 2019 to draw the scrutiny of U.S. regulators away from Binance.com.

Source: Wall Street Journal March 05, 2023 21:17 UTC