Crypto exchange Binance is considering legal action against its former payment provider Checkout.com, a spokesperson for Binance told Cointelegraph on Aug. 18.
The potential legal dispute arises from letters sent by Checkout.com to Binance on Aug. 9 and Aug. 11. According to a Forbes report, Guillaume Pousaz, CEO of Checkout.com, ended the relationship with Binance, citing “reports of regulators actions and orders in relevant jurisdictions,” along with concerns about Anti-Money Laundering, sanctions and compliance controls.
“We do not agree with Checkout’s purported basis for termination and are considering our options for legal action,” said a Binance spokesperson in an email, clarifying that on-ramp and off-ramp services remain available at the exchange.
However, the termination of the business relationship led the crypto exchange to shut down Binance Connect, a regulated crypto buy-and-sell operation, on Aug. 16. Launched in March 2022, the platform served as a fiat-to-crypto payment provider, bridging crypto firms to the traditional finance system via support for over 50 cryptocurrencies and fiat transactions. According to Forbes, Checkout.com once had Binance as its largest customer, handling approximately $2 billion in transactions in a single month back in 2021.
Binance has been experiencing a debanking of its operations over the past few months, resulting in several of its global branches struggling to find partners. In June, the exchange announced that its euro banking partner, Paysafe Payment Solutions, would end support in Europe. In Australia, its local branch was cut off from the banking system in June without warning or prior consultation. In the United States, Binance.US reportedly faced difficulties finding banking partners, and former partners Silvergate and Signature Bank were shut down amid the banking crisis earlier this year.
The ongoing crisis has even prompted Binance CEO Changpeng Zhao to consider buying a bank, he revealed during an interview.
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5irpic.twitter.com/IWTb7Et86H
— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023
Binance’s business and legal troubles appear to be far from over. On June 5, the global exchange and its CEO were sued by the U.S. Securities and Exchange Commission over allegations of violating securities laws and offering unregistered securities in the country.
David Lammy has confirmed there will be an independent investigation into the accidental release of a migrant jailed for sex offences, as he blamed “human error” for the incident.
The deputy prime minister and justice secretary told MPs he was “livid” on behalf of Hadush Kebatu’s victims and he would be deported back to Ethiopia “as quickly as possible”.
Kebatu, who was found guilty in September of sexually assaulting a 14-year-old girl and a woman in Epping, was freed in error from HMP Chelmsford in Essex on Friday instead of being handed over to immigration officials for deportation.
Image: Migrant sex offender found and arrested after manhunt
His accidental release sparked widespread alarm and a manhunt that resulted in him being found and arrested by the Metropolitan Police in the Finsbury Park area of London at around 8.30am on Sunday.
Addressing MPs in the House of Commons, Mr Lammy said the mistake should not have happened as he sought to lay part of the blame on to the Conservatives over the state of the prison system over the past 14 years.
He said “there must and there will be accountability” for the mistaken release of Kebatu from prison.
“I’ve been clear from the outset that a mistake of this nature is unacceptable,” he said.
“We must get to the bottom of what happened and take immediate action to try and prevent similar releases in error to protect the public from harm.”
Mr Lammy said he ordered an “urgent review” into the checks that take place when an offender is released from prison, and new safeguards have been added that amount to the “strongest release checks that have ever been in place”.
The justice secretary said the investigation would be led by former Metropolitan Police deputy commissioner Dame Lynne Owens, who also used to lead the National Crime Agency.
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Witness describes confusion outside prison
He also said the investigation would have the same status as high-profile probes into other prison incidents, including the attack on three prison officers at HMP Franklin in April of this year and the escape of Daniel Khalife from HMP Wandsworth in 2023.
‘Calamity Lammy’
Shadow justice secretary Robert Jenrick referred to a report by Sky News which detailed how a witness present at the prison observed Kebatu appearing “confused” upon his release.
The witness said Kebatu had in fact tried to go back into the prison several times, but was instead guided to Chelmsford station, where he caught a train to London.
Mr Jenrick claimed the case was proof “the only illegal migrants this government are stopping are those that actually want to leave the UK”.
“Dear oh dear,” he said. “Where to begin? This justice secretary could not deport the only small boat migrant who wanted – no – who tried to be deported.
“Having been mistakenly released, Hadush Kebatu came back to prison asking to be deported not once, not twice, but five times, but he was turned away.”
He went on: “The only illegal migrants this government are stopping are those that actually want to leave the UK.
“His officials, briefing the press, called it the mother of all – yeah, they’re not wrong, are they?”
Mr Jenrick, who served as immigration minister under the previous Conservative government, branded his opposite number “calamity Lammy”.
“It’s a national embarrassment and today the justice secretary feigns anger at what happened.”
Continuing with his attack, Mr Jenrick asked Mr Lammy whether he would resign if Kebatu was not deported “by the end of the week” – to which he received no reply.
But asked later by an MP whether he was considering his position, Mr Lammy replied: “A ridiculous question, the answer is no.”
The new checks announced by Mr Lammy on Monday involve five pages of instructions and require more senior prison staff to sign off a release, according to documents obtained by Sky News.