As reported by Bloomberg, the US Department of Justice has initiated an investigation into the Binance cryptocurrency exchange. Binance Business Officials Interested In Money Laundering And Tax Investigations
Binance cryptocurrency exchange was founded in 2017 and is the largest in the world. It is registered in the Cayman Islands and has an office in Singapore. According to Bloomberg, the US Commodity Futures Trading Commission (CFTC) investigates whether Binance is enabling Americans to transact illicitly on its platform by allowing them to buy derivatives related to digital tokens. US residents can only purchase such products from CFTC registered firms. Binance has said in the past that it is blocking illegal transactions on its website for US users, warning that it could freeze the accounts of attackers.
The Chainalysis company reported that in 2019, about $756 million of transactions were made through Binance out of the total volume of criminal transactions with Bitcoin for $2.8 billion.
A Binance spokesman said the exchange takes its “legal obligations” seriously and has developed a robust system to monitor compliance with regulatory requirements. Including the company has tools to combat money laundering and “extensive experience in assisting law enforcement agencies worldwide, including the United States.”
A source: The verge