According to the news of Reuters, the investigation opened by the US Department of Justice against Binance in 2020 is still ongoing.
Binance Investigation Continues?
According to the news of Reuters, the investigation opened by the US Department of Justice against Binance in 2020 is still ongoing. According to the news, sources with knowledge of the subject said that prosecutors under the US Department of Justice are investigating whether Binance is involved in money laundering actions. Prosecutors will determine in their investigation whether the company violated the Bank Secrecy Act. Previously, executives of the cryptocurrency exchange BitMEX were also prosecuted for violating this law. Prosecutors requested that 13 top executives, including Binance CEO Zhao, submit financial records for the period. Patrick Hillman, Binance Chief Communications Officer, said: “Regulators in many countries around the world are in contact with major cryptocurrency exchanges to better understand the crypto industry. This is a standard process for any regulated organization. We are working in harmony with the institutions to evaluate the demands of the country authorities,” he said.
Statement from CZ
Apart from the violation of the Bank Secrecy Act, there is another claim made against Binance. This allegation is that Binance is secretly working under the Chinese government. Following the emergence of these rumors, Binance CEO Changpeng Zhao made a statement. Zhao said in a statement: “The biggest challenge Binance is facing today is that we have been designated a criminal organization in China. At the same time, our opposition in the west is trying to portray us as a Chinese company.” Zhao has the view that these theories arose because he and a few Binance employees were Chinese, making Binance a target.
What Happened in 2020?
So why did the US Department of Justice open an investigation into Binance in 2020? The US Department of Justice and the Internal Revenue Service opened an investigation into the Binance platform on allegations of money laundering and tax evasion. Following this investigation, Binance spokesperson Jessica Jung stated that the company takes all its legal obligations seriously and is in contact with regulators.
