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As part of a protracted investigation into possible violations of money-laundering laws at one of the world’s largest crypto businesses, federal prosecutors are now looking into Binance’s connections with American hedge funds. According to the most recent reports, the U.S. Attorney’s Office for the Western District of Washington issued subpoenas in recent months directing investment companies to provide details of their communications with the top cryptocurrency exchange Binance.
Binance In More Trouble?
The subpoenas have been issued at a time when Binance, the largest crypto conglomerate in the world, is under increasing scrutiny from the media as well as the regulatory authorities on its business methods and financials. This criticism reached a fever pitch by the end of the previous year in the wake of the multi-billion-dollar implosion of FTX, which shook the trust of investors in an increasingly volatile and unsettled crypto market.
However, according to legal specialists, the U.S. authorities are still examining the evidence at hand & currently in discussion for a potential settlement with Binance; therefore indicating that the purportedly issued subpoenas do not aim towards pressing charges against the cryptocurrency exchange or the hedge funds in question.
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During an interview, Binance’s Chief Strategy Officer Patrick Hillmann, claimed the exchange regularly communicates with nearly “every regulator across the globe,” but would not elaborate on the status of any ongoing investigations in the United States.
Binance’s Growing Legal Issues
According to legal experts, Binance has built quite an (in)famous reputation over the years by successfully dodging rules and exploiting legal loopholes to keep its business going in numerous countries. Legislators were concerned about the platform’s role in money laundering because the corporation had not previously required users to provide any sort of identification like a formal KYC. The crypto giant was reportedly linked to the Russian dark web marketplace Hydra last year, with the leading media outlet calling it a “hub for hackers, fraudsters and drug traffickers”.
However, Binance vehemently denied the allegations and publicly objected to the report by issueing an official statement along with a blog from the company’s official Twitter profile.
Reuters has it wrong again.
Now they're attacking our incredible law enforcement team. A team that we're incredibly proud of – they've made crypto more secure for all of us.
Here’s the full statement we sent the reporter and a blog about our remarkable law enforcement team.
— Binance (@binance) December 12, 2022
Binance, as of late, has been exerting efforts to enhance its commitment to compliance. The exchange has made dire attempts to grow its workforce in the security & compliance department by a factor of 500% back in 2022.
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