The Office of Foreign Assets Control on Nov. 21 announced a $968 million settlement with Binance, the world’s largest virtual currency exchange, for allegedly violating multiple U.S. sanctions programs when the company allowed people who were either subject to sanctions or located in sanctioned jurisdictions to use its platform. OFAC said Binance senior management knew they were illegally allowing sanctioned users to access its online exchange platform and took steps to “undermine” the company’s own compliance procedures.
The most recent tri-seal compliance note from the Commerce, Treasury and Justice departments is another sign that the U.S. is increasing its focus on export and sanctions enforcement and of the government’s effort to push companies to voluntarily disclose potential violations, law firms said last week. The firms urged businesses to review each agency's disclosure policy, saying the note could mean increased risks for companies that choose not to disclose.
DOJ rolled out indictments on June 23 against four China-based chemical manufacturing companies and eight employees and executives at these companies for knowingly making, selling and distributing precursor chemicals for fentanyl proliferation in the U.S. Filing three cases at two New York district courts, Attorney General Merrick Garland said the suits stand as an effort to target "every step of the movement, manufacturing, and sale of fentanyl -- from start to finish." The cases mark the first time a Chinese company or individual has been charged for trafficking fentanyl precursor chemicals.
DOJ rolled out indictments on June 23 against four China-based chemical manufacturing companies and eight employees and executives at these companies for knowingly making, selling and distributing precursor chemicals for fentanyl proliferation in the U.S. Filing three cases at two New York district courts, Attorney General Merrick Garland said the suits stand as an effort to target "every step of the movement, manufacturing, and sale of fentanyl -- from start to finish." The cases mark the first time a Chinese company or individual has been charged for trafficking fentanyl precursor chemicals.
DOJ rolled out indictments on June 23 against four China-based chemical manufacturing companies and eight employees and executives at these companies for knowingly making, selling and distributing precursor chemicals for fentanyl proliferation in the U.S. Filing three cases at two New York district courts, Attorney General Merrick Garland said the suits stand as an effort to target "every step of the movement, manufacturing, and sale of fentanyl -- from start to finish." The cases mark the first time a Chinese company or individual has been charged for trafficking fentanyl precursor chemicals.
A series of export control indictments announced this week, including several for illegal shipments to China and Russia, only scratched the surface of prosecutions expected to be brought as part of the new Disruptive Technology Strike Force, said Matthew Axelrod, the Bureau of Industry and Security's top export enforcement official. “It’s just the beginning,” Axelrod said during a May 17 law conference hosted by the American Bar Association, Mayer Brown and American University. “I think you can expect to continue to see actions come out from the strike force as this work continues.”
DOJ’s new corporate enforcement policies substantially increase compliance incentives and may lead to more voluntary self-disclosures, law firms said. But they also said much of the new policy will depend on how DOJ implements the changes, and it remains unclear how much of a downstream impact the revisions will have on export control and sanctions cases handled by other agencies.
The Bureau of Industry and Security issued a 180-day temporary denial order Dec. 13 against three people and two companies for illegally sending controlled exports to Russia as part of a Moscow-led sanctions evasion scheme. Along with the denial order, DOJ indicted the three individuals, along with others, on charges related to the illegal exports, including money laundering, wire fraud, bank fraud and conspiring to defraud the U.S.
Yanjun Xu, a Chinese national and the first Chinese government intelligence official to be extradited to the U.S. to stand trial, was sentenced Nov. 16 to 20 years in prison, DOJ announced. Xu stole trade secrets from American aviation companies by recruiting employees to travel to China and then stealing their proprietary information on behalf of the Chinese government, the U.S. said. A federal jury in November 2021 convicted Xu on all counts: conspiracy to commit economic espionage, conspiracy to commit trade secret theft, attempted economic espionage and attempted trade secret theft (see 2111080021).
Yanjun Xu, a Chinese national and the first Chinese government intelligence official to be extradited to the U.S. to stand trial, was sentenced Nov. 16 to 20 years in prison, DOJ announced. Xu stole trade secrets from American aviation companies by recruiting employees to travel to China and then stealing their proprietary information on behalf of the Chinese government, the U.S. said. A federal jury in November 2021 convicted Xu on all counts: conspiracy to commit economic espionage, conspiracy to commit trade secret theft, attempted economic espionage and attempted trade secret theft (see 2111080021).