The US Justice Department’s money laundering section reached out to Binance in 2020 and asked the exchange to hand over internal communication records, involving the exchange’s head Changpeng Zhao (CZ), according to a written letter seen by Reuters.
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The report says the watchdog also wanted to see records involving 12 other executives and partners about their efforts to combat money laundering. It is unclear if Binance provided all the requested information as the investigation into Binance’s compliance with US financial laws remains ongoing, Reuters wrote, citing sources close to the matter.
People familiar with the matter told Reuters that US authorities are trying to figure out whether Binance violated the Bank Secrecy Act. Reuters says Binance’s CCO couldn’t specify how exactly the exchange responded to the Justice Department request. A spokesperson for the US Justice Department made no comment so far.
As iHodl earlier reported, the House Committee on Oversight and Reform sent four letters to regulatory bodies, including the US Securities and Exchange Commission (SEC) regarding their efforts to protect investors in the cryptocurrency market.
The authorities have reportedly also sent letters to five crypto exchanges, including Coinbase and Binance.US, as the market lost $1 billion in a variety of fraud schemes since 2021.
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