Binance Investigation is Taking a New Turn
Binance investigation is unraveling as several US companies have reportedly received subpoenas to reveal their communication with Binance
The U.S. attorney’s office for the Western District of Washington in Seattle ordered American investment firms to pass records of their communications with Binance due to its murky regulatory conduct.
Speaking on condition of anonymity with the Washington Post, two people told the newspaper that they saw and reviewed the subpoenas, which are part of the investigation launched into Binance’s activities, in part fuelled by the implosion of FTX.
Although the authorities may not bring charges and are mulling a possible settlement with Binance, some experts hypothesize that the prosecutors are examining whether Binance violated the Bank Secrecy Act. According to the Act, financial institutions must verify the identities of their customers and report suspicious activity that might be a sign of money laundering, tax evasion, or other crimes.
The links between failed crypto platforms also spark concerns. Celsius, which went bankrupt in July, lent a lot to FTX affiliate Alameda Research. Meanwhile, Binance’s founder and chief executive, Changpeng Zhao, was an early FTX backer. GNCrypto reported about their ‘story of unlove’ here.
Despite criticism, Binance chief strategy officer Patrick Hillmann acknowledged that while at the beginning, Binance had an imperfect regulatory approach, the company has since then abandoned its practices, heavily invested in compliance programs, worked closely with law enforcement, and developed a new technology for catching criminals on its platform.
The exchange also said it complies with all U.S. laws and assists law enforcement agencies with their investigations. Still, it is yet to register Binance.com, its primary offshore exchange, with the Treasury Department’s Financial Crimes Enforcement Network, or FinCEN.
Previously, GNCrypto analyzed the ‘scandalous pump’ on the Binance exchange.
