US Orders Binance and its CEO to Submit Documents in Money Laundering Investigation
Supposedly, the money laundering unit of the U.S. Department of Justice (DOJ) is investigating the cryptocurrency exchanges Binance and its CEO, Changpeng Zhao. According to Reuters, in the final leg of 2020, the US federal prosecutors issued a formal request to the world’s number one crypto exchange by transaction volume, requesting anti-money laundering documents.
The officials allegedly sought the communication logs of Zhao and 12 additional Binance officials and associates about subjects like as the crypto exchange’s client recruitment and fraudulent financial detection. In addition, they want to get papers containing language such as “papers be deleted, changed, or erased from Binance’s archives” and “moved out of the United States.”
According to sources close to the situation cited by Reuters, the demand is a component of an ongoing inquiry into Binance’s adherence with the US financial crime rules. According to reports, investigators are examining whether the cryptocurrency exchange breached the Bank Secrecy Act, which prohibits the trafficking of ill-gotten riches via financial institutions. This legislation requires cryptocurrency exchanges to enroll with the Treasury Department and abide by anti-money laundering regulations.
Clarity is yet to emerge on Binance and Zhao’s response to the demand. Patrick Hillman, chief communications officer of Binance, said that global authorities are in touch with key crypto currency exchanges to have a deeper understanding of the crypto business.
“This is a common procedure for regulated organizations, and we interact routinely with authorities to answer any queries they may have.”