Binance Faces New Lawsuit as Former Employee Alleges Unfair Dismissal

Highlights:

• A former Binance executive sued the company for alleged unfair dismissal after she reported bribery concerns.
• The whistleblower claims that Binance prioritized revenue over ethics in UK operations.
• Nigerian authorities are accusing Binance of laundering $35.4 million and unlicensed operations.

A former employee of Binance has submitted a whistleblower lawsuit in the UK asserting wrongful termination. Amrita Srivastava alleged she was terminated for reporting a suspected bribery by a colleague. 

Former Binance executive sues over whistleblower dismissal amid bribery allegations: Bloomberg

A former executive at Binance is suing the cryptocurrency exchange in the UK, alleging she was dismissed for whistleblowing, according to Bloomberg. Amrita Srivastava claims she was…

— CoinNess Global (@CoinnessGL) November 28, 2024

The alleged event happened in April 2023. According to Srivastava, a colleague requested a bribe from a customer in exchange for preferential treatment. He allegedly pretended not to work for Binance while helping facilitate the bribe. Srivastava said the payments were termed as ‘consultative services.’ The co-worker has since left the company.  

Srivastava was fired a month after reporting the issue. According to Binance, her dismissal had nothing to do with her whistleblowing. Binance lawyers claim her performance issues resulted in her termination. However, Srivastava insists that the firing was retaliation because she raised the concerns.  

Bribery and Financial Misconduct at the Core of Allegations

The lawsuit points to holes in Binance’s internal controls. According to her, the company cared more about the revenue than it did about ethics. She claimed that one customer linked to Iran was responsible for a quarter of Link’s revenue. The reliance on one client raised concerns about compliance and regulatory risks.  

Legal experts point out that UK whistleblowers can win unlimited awards in employment tribunal cases. However, claims are capped at £105,700 for unfair dismissal.  

Ongoing Litigation for Binance

The lawsuit piles on legal woes for Binance. Global regulators such as the Department of Justice have been closely examining the company. Authorities fined Binance for breaching anti-money laundering regulations last year in the U.S.

In another case in the Netherlands, a court ordered Binance to share information on an account tied to a €186,000 scam. A woman who was scammed reported the fraud to Dutch authorities in August 2023. Authorities traced some of the funds back to a Binance account. The court ordered Binance to disclose the identity of the account holder to help retrieve the stolen money. 

Nigeria Sues Binance and its Executive

Nigeria has accused Binance and its executive Nadeem Anjarwalla of laundering $35.4 million. The EFCC had filed an amended six Count charge against him in the Abuja High Court. These allegations include operating without authorization and engaging in illicit foreign exchange transactions.

⚖️ The @officialEFCC ramps up its $35.4M money laundering case against Binance and exec Nadeem Anjarwalla, citing unauthorized financial activities and regulatory breaches in Nigeria! 🚨💰#Binance #Crypto #Nigeria #MoneyLaundering #Blockchain #CryptoNews #Regulations #DeFi…

— Web3insights.io (@Web3insightsio) November 26, 2024

Binance allegedly failed to disclose proceeds from illegal acts, in violation of Nigeria’s Money Laundering Prevention and Prohibition Act of 2022. In addition, the EFCC also maintained that Binance acted as an unlicensed financial institution under the Banks and other Financial Institutions Act of 2020.

At a hearing, the EFCC’s representative brought in evidence to back these allegations. Binance’s representatives, however, did not appear before the court, to which it returned a not-guilty plea. However, the case now continues and could have huge legal consequences for Binance’s work in the region.

Binance is still a major player in the cryptocurrency market despite its legal challenges. However, its reputation and regulatory standing will continue to be affected by ongoing investigations. The lawsuit adds to the ongoing scrutiny of the platform.