It's not much of an argument... he wasn't being held responsible for the actions of a few binance users, we was being held responsible for his own failure to implement compliance processes required by law.

The laws exist to restrict funding for countries under sanction, drug operations, terrorist organizations, etc.

We can argue about whether these laws are a good idea (either in general or in specific details), but you need to change the law, not just now follow it.

This is a terrible precedent... unless you're a con man, that is. (Balaji Srinivasan isn't stupid. I would guess he understands how real what he's arguing here is.)