Binance Faces Bribery and Retaliation Allegations from Former Employee

• A former Binance executive alleges unfair dismissal after reporting a bribery incident within the organization.
• Binance faces scrutiny over claims of prioritizing revenue generation over compliance and ethics.
• The Department of Justice is investigating $16 million in crypto linked to bribes authorized by FTX’s former CEO.

A former Binance executive filed a whistleblower claim in the UK, alleging bribery within the company.

Amrita Srivastava, a former senior employee at Binance’s London office, claims she was unlawfully dismissed after reporting bribery to a colleague, according to Bloomberg. These accusations renewed focus on Binance’s practices after it admitted guilt in November 2023 to U.S. anti-money laundering violations and paid a $4.3 billion penalty.

Alleged Bribery Scheme and Internal Mismanagement

Srivastava, who joined Binance in April 2022, detailed her claims during an employment court hearing. She alleges that a colleague accepted bribes disguised as consulting fees in exchange for expediting a customer’s enrollment in Binance’s services.

Adding to this, Srivastava stated that she reported the bribery incident to Binance managers in April 2023, only to be dismissed a month later. She argues that Binance prioritized revenue over compliance, particularly within its Link platform, which connects brokers and customers to the exchange.

Read also : Binance Caught in FTX Crossfire: US Department of Justice to Seize $16 Million in Crypto

Binance, through its legal representation, denied any link between Srivastava’s dismissal and her whistleblowing. The company claims her dismissal was due to poor performance, an issue identified before her concerns were raised. Binance also stated that its internal audit team had already flagged the bribery incident and was investigating it.

Binance Faces Further Legal Challenges

These allegations come amid other legal issues for Binance. U.S. authorities are reportedly seeking to recover $16 million in crypto from a Binance account linked to former FTX CEO Sam Bankman-Fried.

The Department of Justice says the funds were connected to bribes authorized by Bankman-Fried and include holdings in Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL).