The money laundering section of the U.S. Department of Justice (DOJ) is reportedly probing into the records of crypto exchange BINANCE and its CEO, Changpeng Zhao.
Reuters reports that in late 2020, US federal prosecutors sent a written request to the world’s biggest crypto platform by trading volume to ask for internal records related to anti-money laundering checks.
The authorities reportedly wanted the communication records of Zhao and 12 other Binance executives and partners on matters such as how the exchange recruits customers and detects suspicious transactions.
They also want to take hold of records containing phrases like “documents be destroyed, altered, or removed from Binance’s files” and “transferred from the United States.”
People familiar with the matter told Reuters that the request is part of an ongoing investigation of Binance’s compliance with the financial crime laws in the US.
Investigators are reportedly looking into whether or not the crypto exchange violated the Bank Secrecy Act, which seeks to prevent the laundering of ill-gotten gains in financial institutions. This law directs crypto exchanges to register with the Treasury Department and comply with anti-money laundering requirements.
It is not clear how Binance and Zhao responded to the request. Binance chief communications officer Patrick Hillman says regulators around the world are reaching out to major digital asset exchanges to have a better grasp of the crypto industry.
“This is a standard process for any regulated organization and we work with agencies regularly to address any questions they may have.”
