Reports surfaced last year linking the exchange to the Russian dark web marketplace.
The multibillion-dollar collapse of FTX rocked the faith of investors.
Prosecutors in the United States are investigating Binance’s ties to American hedge funds. As part of a long-running probe into the exchange’s alleged breaches of money-laundering laws. Recent reports indicate that the U.S. Attorney’s Office for the Western District of Washington has issued subpoenas requiring investment firms to disclose their interactions. With the largest cryptocurrency exchange, Binance.
Moreover, Binance, the biggest crypto conglomerate in the world, is now the subject of intense media and regulatory investigation about its business practices and financials, which has led to the issuance of subpoenas. The multibillion-dollar collapse of FTX, which rocked the faith of investors in an increasingly unpredictable and unsettled crypto market, fueled a flurry of protest around the close of the previous year.
A Possible Settlement Outcome Expected
However, legal experts say that the United States government is still reviewing the evidence. And is in talks with Binance about a possible settlement. So it’s unlikely that the subpoenas it has allegedly issued will lead to criminal charges. Being brought against the cryptocurrency exchange or the hedge funds in question.
Binance’s Chief Strategy Officer Patrick Hillmann said in an interview that the exchange is in touch with “every regulator across the globe,” but he wouldn’t comment on the current status of any investigations taking place in the United States.
Because the company has not previously required users to show identity like a formal KYC, legislators worried about the platform’s involvement in money laundering. Reports surfaced last year linking the crypto behemoth to the Russian dark web marketplace Hydra, which is dubbed a hub for hackers, scammers, and drug traffickers.