The U.S. Department of Justice began an investigation into Binance in 2020 to learn more about its AML anti-money-laundering laws, regulations, and procedures that aim to end the unlawful income practices. controls and compliance. The investigation is still ongoing.
- U.S. prosecutors requested internal records from Binance in 2020.
- Request was part of a Department of Justice investigation.
- Zhao said on Twitter that the request was honored at the time.
More details on cryptocurrency exchange investigation Binance by U.S. federal authorities have come to light.
According to a informs of Reuters In late 2020, U.S. federal prosecutors asked the U.S. Attorney General’s Office to Binance the world’s largest cryptocurrency exchange, to provide extensive internal records produced since 2017 on its anti-money laundering (AML) controls, regulatory compliance and its business in the country.
Released Thursday, the report states that the money laundering division of the U.S. Department of Justice (DOJ) requested the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. at that time to voluntarily deliver internal messages related to stopping illegal transactions and recruiting U.S.-based clients.
The request extended to any communication instructing employees to destroy, alter, or delete documents from the files of Binance or that “be transferred from the United States”. According to Reuters, prosecutors asked for internal messages involving CEO Changpeng Zhao and 12 other company executives and partners.
U.S. prosecutors investigate Binance
The instance was part of a DOJ investigation into the enforcement of the exchange Specifically, the U.S. authorities are seeking to know if Binance violated the Bank Secrecy Act which requires financial entities, including cryptocurrency exchanges that conduct substantial business in the country, to register with the Treasury Department and comply with anti-money laundering requirements.
According to the publication, which consulted four people familiar with the investigation who were not identified, the Justice Department’s investigation is still ongoing.
As he points out Reuters The request reveals the broad scope of U.S. federal agents’ investigations into the largest cryptocurrency exchange. In May last year, Bloomberg reported that officials of the DOJ had opened an investigation into Binance The case, although until now, few details of the case were known.
Binance has been facing scrutiny from regulators in the United States and several countries around the world. In the U.S., the exchange is also being investigated by the Internal Revenue Service (IRS) and the Commodity Futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Trading Commission (CFTC), according to previous reports by Bloomberg . The latter agency sought to determine whether the exchange allowed commercial activities by users residing in the country.
More recently this year, it also came to light that the U.S. Securities and Exchange Commission (CFTC) conducts a separate investigation to the exchange in connection with the sale of yourtoken a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. Binance Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. (BNB) and a possible violation of federal securities law.
CZ changpeng Zhao (CZ) is the founder of crypto exchange Binance. responds to the report of Reuters
Reuters could not determine how he responded Binance to the 2020 DOJ requests. The exchange’s director of communications, Patrick Hillmann, commented that Binance is not the only one exchange of cryptocurrencies going through a similar process, as regulators around the world are looking to reach out to major platforms.
“ This is a standard process for any regulated regulation is when something is controlled by a specific set of rules. organization. and we work with agencies on a regular basis to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. any questions they may have. “, dijo Hillmann. Binance holds “ an industry-leading global security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. and compliance team “with more than 500 employees, including former regulators and law enforcement officials, he added.
Founder and CEO, Changpeng Zhao, also addressed the report’s Reuters in a tweet this morning, in which he indicated that the company had provided the requested reports to U.S. prosecutors and reiterated its commitment to working with regulators.
Another story today about a cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. company receiving an inquiry from a regulator. A request to VOLUNTARILY share certain information in 2020, which we did. Important for the industry to build trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. with regulators. My chat messages are semi-public anyway.
Another story today about a crypto company receiving an inquiry from a regulator. A request to VOLUNTARILY share certain information back in 2020, which we did. Important for the industry to build trust with regulators.
My chat messages are semi-public anyway. pic.twitter.com/h35Xd4tZhf
– CZ ???? Binance (@cz_binance) September 1, 2022
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Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash published in Canva