US Assigns Hedge Funds to Binance Probe: Report

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Federal prosecutors have reportedly issued subpoenas to several U.S. hedge funds that have dealt with the world’s largest cryptocurrency exchange, Binance Global Inc., as part of a years-long investigation into possible violations of money laundering rules, reported the Washington Post.

See Related Article: US Department of Justice Considers Indicting Binance Over Potential Money Laundering Violations: Report

Fast facts

According to the Washington Posts, two unnamed sources familiar with the matter, the U.S. Attorney’s Office for the Western District of Washington in Seattle is seeking records of communications from companies subpoenaed to appear with Binance.

In December last year, the US Department of Justice was split on whether to indict Binance and its executives in its anti-money laundering investigation into the company.

Subpoenas would not necessarily result in legal action against Binance, according to the report.

Binance Chief Strategy Officer Patrick Hillmann told The Washington Post that the company speaks with virtually every regulator in the world on a daily basis, but declined to comment on the status of the investigation.

Former prosecutor John Ghose told the Washington Post that the Justice Department could look into whether Binance violated the Bank Secrecy Act, which requires financial institutions to enforce proper know-your-customer protocols and report activity. suspicious on their platforms.

The scrutiny of the crypto industry has increased dramatically following the multi-billion dollar collapse of Bahamas-based crypto exchange, FTX.com.

The U.S. Securities and Exchange Commission last week objected to U.S. arms Binances’ offer to buy the assets of bankrupt crypto lender Voyager Digitals for $1 billion, saying the deal of purchase lacked sufficient details about Binances’ ability to complete the deal.

See Related Article: SEC Opposes $1 Billion Binances Deal to Buy Voyager Digitals Assets

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