US legal authorities have begun to closely monitor Binance, the world’s biggest cryptocurrency exchange. Since 2018, it has been under investigation by the US officials and now investigations are being stepped up as prosecutors in America demand all crypto hedge funds with any contact history with Binance must divulge their communication records.
Binance Tries to Patch Holes Leading to Illegal Activities.
In the recent months, The Washington Post has reported that hedge fund companies based in the United States have been receiving subpoenas as part of a lengthy investigation into Binance for potential money laundering violations. Binance itself now acknowledges that their compliance with legal rules and regulations had shortcomings during its early stages. This is no longer the case. The crypto exchange now keeps in close contact with just about every regulatory body worldwide, as Chief Strategy Officer Patrick Hillmann recently shared with The Washington Post.
Charges Against Binance Can Change the Crypto World
The Washington Post reports that one of the most intricate struggles for investigators is to demonstrate that Binance falls under US law. For instance, its main shell company, Binance Holding Ltd., which operates several subsidiaries, lies in the Caymans. At the present, no charges have been brought against Binance or any of their affiliated crypto hedge funds. The subpoenas issued do not guarantee indictments; however, some federal prosecutors involved in the investigation believe that there is already enough evidence to make a case for criminal charges against Changpeng Zhao and other executives at Binance. It’s possible that aggressive action may be taken soon as a result.
