- Federal prosecutors asked for access to CEO Changpeng Zhao’s communication investigating the exchange’s anti-money laundering.
- Binance is currently under investigation over potential violations of the Bank Secrecy Act, according to Reuters.
- Binance Coin price nosedived, observing a 3% decline overnight.
US Prosecutors are investigating the world’s largest crypto exchange and CEO Changpeng Zhao. The US Justice Department’s money laundering division is digging CZ’s communication for illegal transactions and information on the recruitment of US Customers.
US Justice Department’s money laundering division investigates Binance CEO
US Prosecutors requested communication records of Changpeng Zhao, CEO of Binance in late 2020. The US Justice Department’s money laundering division continued its investigation in the world’s largest crypto exchange, according to Reuters.
The exchange was asked to voluntarily hand over messages relating to its detection of illegal transactions and recruitment of US customers. CZ and twelve other executives and partners of Binance have been included in the request for messages and communications.
Sources close to the matter went on to say US authorities are investigating whether Binance may have violated the Bank Secrecy Act. Under this act, crypto exchanges that conduct substantial business in the US must register with the Treasury and comply with anti-money laundering guidelines. Violators of the Bank Secrecy Act could face jail sentences.
A Binance spokesperson was quoted as saying:
This is a standard process for any regulated organization and we work with agencies regularly to address any outstanding questions.
The spokesperson went on to add that Binance has industry leading global security and compliance team which boasts more than 500 employees.
Binance Coin price nosedived in response to the development. BNB yielded nearly 3% losses. Analysts predicted further decline in BNB price. NekozTek, a pseudonymous crypto analyst identified a short opportunity in the BNB price chart.
BNB-USDT price chart
The analyst acknowledged that he is sitting out the short opportunity for CZ. It is likely that the Binance CEO comes out with a comment on the investigation and how the exchange is handling the same. The transparency could fuel a bullish sentiment among holders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.