Lawsuit filed against Binance over unpaid donations for cancer patients

The Malta-based charity led by President George Vella has filed a lawsuit against cryptocurrency exchange Binance over unpaid donations. Times of Malta reports.

In 2018 Binance opened a bank account on Malta. At that time, the company established the Blockchain Charity Foundation and pledged to transfer to the foundation $200 000 along with smaller crypto disbursements for cancer patients and people with disabilities.

According to the project’s сайту, the donations had exceeded $9.6 million by the time of writing. The amount remained unpaid.

The publication claims that the Blockchain Charity Foundation’s development slowed when Binance failed to obtain a license from the local regulator. The exchange allegedly is attempting to liquidate the charitable foundation.

Former Maltese president Marie-Louise Coleiro Preca said the question of transferring donations had indeed been discussed with authorities.

“These discussions did not progress, and, as far as I know, the funds remained in the cryptocurrency space,” she said.

According to the complaint, the Maltese foundation unsuccessfully pursued the promised funds from Binance for those suffering, who are in acute need of help. The Charity Foundation was accused of attempting to terminate the donation agreement unilaterally.

The plaintiff sought a court order to prevent the liquidation of Binance’s legal entity.

“This implies that the charitable organisation is not only trying to dodge the agreements and evade its obligations, but also move assets out of Malta, to the United States,” the documents say.

Binance representatives said the funds were intended to be paid directly to cancer patients. The company explained the liquidation of the entity by setting up a similar US subsidiary and stressed that it does not intend to evade its obligations.

In June 2021, the UK Financial Conduct Authority forbade Binance Markets Limited from any regulated activity in the country without prior written approval.

The Cayman Islands began a probe into Binance’s operations, Thailand and Hong Kong accused the company of operating without a license, Japan issued another warning.

Polish regulators warned consumers about the risks of dealing with the platform, and Italy and Malta— about Binance’s unregulated activities.

Against regulatory pressure, Zhao published an open letter in which outlined Binance’s plans to meet regulatory requirements and protect customers.

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