U.S. authorities have sent subpoenas to U.S. hedge funds and market-making firms that manage Binance, the world’s largest cryptocurrency exchange, asking them to record their interactions with the exchange.
The Washington Post reported on Saturday that the U.S. Attorney’s Office for the Western District of Washington in Seattle has sent subpoenas to investment firms affiliated with Binance asking them to share records of their communications with Binance.
Legal experts say a subpoena does not necessarily mean that authorities are likely to bring charges against the exchange. We are considering whether there is sufficient evidence to prosecute the company,” the Post said.
The subpoenas are part of a larger investigation into possible money laundering law violations by the world’s largest cryptocurrency exchange, first reported by Bloomberg last June. According to the report, the SEC is also investigating whether Binance’s initial issuance of BNB tokens in 2017 was an unregistered security offering.
A federal investigation into Binance has come to light at a time when the crypto industry is struggling with unfriendly stances from regulators around the world. The recent demise of FTX, once the third largest cryptocurrency exchange in the world, has exacerbated concerns about the unregulated online marketplace where digital assets are bought and sold.
Binance Chief Strategy Officer Patrick Hillman was quoted as saying the exchange is in talks with “virtually every regulator around the world every day.” Hillman acknowledged that Binance had some shortcomings in cooperating with and complying with regulatory policies in the early days, but said Binance is now taking compliance very seriously. Said:
“Over the last two years, the company has completely changed its stance. Now that we have these resources, we are one of the most active parties to identify, freeze and reclaim funds. . [laundered by criminals]”
In mid-December, Reuters reported that Binance CEO Changpeng Zhao could also be indicted in the U.S. for money laundering conspiracy and other violations.Binance has been under investigation by the DOJ since 2018, according to reports. is receiving The investigation reportedly focuses on money laundering conspiracies, unauthorized money transfers, and violations of criminal sanctions.
A potential plea bargain is reportedly being discussed between Justice Department officials and Binance’s attorneys.
Notably, Binance is not the only major exchange to be prosecuted for violating money laundering laws. agreed to pay a total of $100 million.
