The Department of Justice and the Internal Revenue Service are investigating one of the world’s largest crypto exchanges, Binance. Binance is suspected of committing money laundering and tax evasion.
This investigation is confidential because it comes from people who know the matter and asked not to be named.
The largest exchange is led by Changpeng Zhao, a charismatic tech executive who loves to promote tokens on Twitter and in media interviews, Binance has overtaken rivals since he co-founded them in 2017.
Binance, like any other industry in which it operates, has largely succeeded outside the scope of scrutiny government. Binance is incorporated in the Cayman Islands (Cayman Island) and has offices in Singapore. However, Binance says it does not have a single corporate headquarters.
Many Funds Associated with Criminal Activity
Chainalysis Inc., a blockchain forensics company whose clients include US federal agencies. Concluded last year that among the transactions that were examined, more funds related to criminal activity flowed through Binance than any other crypto exchange.
“We take our legal obligations very seriously and engage with regulators and law enforcement collaboratively,” Binance spokeswoman Jessica Jung said in an emailed statement as reported by Bloomberg, Friday (14/5/2021).
He said Binance takes legal obligations very seriously and engages with regulators and law enforcement collaboratively.
“We have worked hard to establish a compliance program strong that combines the principles and tools of anti-money laundering used by financial institutions to detect and handle suspicious activity,” said Jessica Jung.
However, spokesman for the Justice Department and the IRS declined to comment.
The US official have expressed concern that cryptocurrencies are being used to hide illegal transactions, including theft and drug transactions. Americans who have made a windfall are betting on a skyrocketing market evading taxes.
Such concerns have become an obstacle to a mainstream industry, even as Wall Street increasingly embracing Bitcoin and other tokens amid a global investment frenzy
This month’s cyber attack on Colonial Pipeline Co. sparked a fuel shortage in the Eastern US is the latest sign of what’s at stake. Colonial Pipeline even paid Eastern European hackers nearly $ 1 The S $ 5 million ransom in untraceable cryptocurrency within hours of the breach, Bloomberg News reported on Thursday (13/5/2021), citing two people with knowledge of the matter.