Binance has been investigated by the US Internal Revenue Service (IRS) and the Department of Justice (DOJ). Officials dealing with money laundering and tax crimes are particularly interested in Binance activities, Bloomberg reports.
Binance, founded in 2017, is the world’s largest cryptocurrency exchange. Founded in the Cayman Islands, this company has an office in Singapore. According to Bloomberg, the US Commodity Futures Trading Commission (CFTC) is investigating whether Binance allows Americans to make illegal trading on its platform by allowing them to purchase derivatives linked to digital currencies.
US residents can only purchase such cryptocurrency products from companies registered with the CFTC. Binance has said in the past that it has prevented Americans from doing illegal transactions on the website and warned that violators’ accounts will be frozen.
Cryptocurrency measurement and analysis firm Chainalysis reported in 2019 that $ 756 million of $ 2.8 billion of criminal transactions involving bitcoin cryptocurrency were passed through Binance.
Binance spokesperson told The Verge site that the company “does not comment on certain issues or questions,” but “takes its legal obligations very seriously.”
“We worked hard to create a robust compliance program that includes anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity,” the spokesperson said. said. “We have a strong history of helping law enforcement agencies around the world, including the United States.”
The scope and details of the federal investigation regarding Binance have not been clarified yet.