Cryptocurrency exchange Bitfinex may face an investigation in the US.
According to the US Department of Justice’s statement, Bitfinex is facing a potential criminal investigation.
The U.S. Department of Justice responded to a Freedom of Information Act (FOIA) request from a person and said the exchange may be facing an investigation.
The Department rejected the request for information, which includes Tether Holdings Limited’s parent company, iFinex, and Bitfinex, citing FOIA Guideline Exemption 7(A). The institution thinks that the information to be given before the court may prevent the hearing.
Bitfinex has also faced investigations in the past over issues related to information given about its sister company Tether’s reserves and whether it has allowed it to trade on an overseas commodity exchange.
Cryptocurrency Exchanges Face Investigations
Like Bitfinex, another cryptocurrency exchange Coinbase is also targeted by regulators. The U.S. Securities and Exchange Commission (SEC) has placed Coinbase under scrutiny for its staking program.
Staking program is a system that allows users to earn passive income from crypto assets in their hands. It is known for attracting more attention from investors, especially during periods when the crypto money markets are in decline.
In the earnings report released by Coinbase the other day, it was stated that 8.5% of its revenues came from staking programs.
