Re:Binance founder Changpeng Zhao agrees to step down, plead...
by ReptileMan on Tuesday November 21, 2023 @04:47PM
(#38370747)
Btw - I never found a good explanation why all USD transfers need to be routed trough usd banks. Google is quite silent on the subject - is it common knowledge or too obvious?
Re:Binance founder Changpeng Zhao agrees to step down, plead...
by hanska on Tuesday November 21, 2023 @08:16PM
(#38373273)
not common knowledge I think.
all usd swift wires get routed through 2 of the major banks - think it was JP Morgan Chase & Wells Fargo. this allows them to check all of these transfers for aml/cft and other sanctions blacklists.
heard this from a guy who works closely with Tether so i'm sure he'd know well
Re:Binance founder Changpeng Zhao agrees to step down, plead...
by hurryer on Tuesday November 21, 2023 @08:02PM
(#38373141)
They don't.
However when you're talking about billions, it's difficult to keep them in anything but US treasuries.
Re:Binance founder Changpeng Zhao agrees to step down, plead...
by WrongAssumption on Tuesday November 21, 2023 @11:22PM
(#38374687)
How would you envision it work otherwise?
The US has recently (gradually over the past 20 years or so) started to really weaponize access to dollar-denominated accounts, essentially conscripting all the banks that want to do business with American banks into service of American foreign policy goals. This started in the aftermath of September 11th, for terrorism, then spread with the Magnitsky act of 2012 to include international corruption, and has slowly spread to more and more areas. So far the US has been somewhat judicious about using the tool- they seem to be aware that if they use it too often people will eventually just build ways around it- but it is a pretty big threat to wield against a company that absolutely needs to do business with somebody's banks.