Binance In New Trouble: Charity In Malta May Face Legal Issues

Binance In New Trouble: Charity In Malta May Face Legal Issues

The commissioner for voluntary organizations in Malta has warned that he may take legal action against a charity foundation run by cryptocurrency firm Binance for failing to file accounts on multiple occasions.

Binance Faces Legal Issues In Malta

According to the Times of Malta, the foundation is being sued by the Malta Community Chest Fund, which wants it to make good on cryptocurrency pledges it made for cancer patients, which are now worth more than €7 million.

The office of the commissioner claimed in a letter dated 23rd July that the world’s largest crypto exchange is guilty of “ignoring” yearly reminders to file its accounts for 2018, 2019, and 2020. Binance has been unable to obtain a license to provide its services in Malta, according to Malta’s watchdog, the Malta Financial Services Authority (MFSA).

“In fact, this letter is being sent to you at your address as, despite many attempts to trace the organisation on the given address and contact numbers supplied in file, no response was forthcoming and all communication ignored,” the watchdog wrote to the foundation’s administrators.

Binance began its regulatory trouble in Malta after the Malta Community Chest Fund sought justice in the case of unfulfilled cryptocurrency donation pledges. According to the community fund, the value of pending donations by Binance’s charity foundation has increased from a few hundred thousand euros to €7 million in the last three years.

The commissioner’s office also stated that it reserves the right to report the incident to the police.

According to Binance’s Blockchain Charity Foundation’s website, its financial statements are being reviewed by an auditor and will be submitted to the commissioner for voluntary organizations by August 2019, in accordance with local regulations.

In a statement issued on 14 July, the MFSA said Binance is not authorised to operate in the virtual assets sector in Malta. The authority had already issued a similar notice in February 2020.

The Malta Community Chest Fund claimed in court that numerous attempts to facilitate the transfer of funds from the Binance foundation to cancer patients failed. It has since filed an injunction to stop Binance from liquidating the foundation and relocating its assets to the United States.

The legal representatives of the Binance Foundation, for their part, have argued that the funds were intended for direct disbursement to cancer patients, with the Malta Community Chest Fund’s role being limited to requesting the transfer of funds to such patients in accordance with a donation plan.

War Of Words

The Binance situation has sparked a spat between Malta’s ruling and opposition parties. Bernard Grech, a nationalist and opposition leader, chastised the government for failing to make Malta a blockchain hub and accused them of being corrupt.

“Blockchain island could have been a reality but, because of its incompetence and corruption, this government turned it into a disaster,” Bernard said.

“But not before using cancer patients to make it look like there was something in it for the Maltese citizen.”

However, the government stated on Tuesday that it had never been involved in the creation or implementation of private agreements between the MCCFF and private companies.

It chastised the opposition for its “irresponsible” statement and stated that it will remain focused on creating wealth and assisting people.