Binance investigation for money laundering

Key points:

• U.S. prosecutors are considering criminal charges against Binance and individual executives including CEO Changpeng Zhao.
• Prosecutors from the U.S. Attorney’s Office in Seattle began investigating Binance in 2018 following a series of cases in which criminals used it to transfer illicit funds.
• Other prosecutors argued that more evidence needed to be gathered before a criminal case could be brought, creating divisions within the Justice Department.
• Binance refuted the Reuters article saying they have responded to more than 47,000 law enforcement requests.
• Binance has increased its security and compliance staff by more than 500%, and its team is “probably the strongest in the whole of finance.”

U.S. prosecutors are considering criminal charges against cryptocurrency exchange Binance and individual executives including founder and CEO Changpeng Zhao, Reuters reported, citing two sources.

The DOJ also discussed a possible complaint with Binance’s lawyers, the report added.

Prosecutors from the U.S. Attorney’s Office in Seattle began investigating Binance in 2018 following a series of cases in which criminals used it to transfer illicit funds, Reuters reported.

Other prosecutors argued that more evidence needed to be gathered before a criminal case could be brought, creating divisions within the Justice Department.

Binance refuted the Reuters article in a statement. Since November 2021, Binance has “responded to more than 47,000 law enforcement requests,” said Tigran Gambaryan, the exchange’s global head of intelligence and investigations.

“As has been widely reported, regulators conduct a comprehensive review of every cryptocurrency company to address many of the same issues. This nascent industry is growing rapidly, and Binance has done so by investing heavily in our team and the tools we use to detect and reduce illicit activity. Tools and technologies, demonstrating its commitment to security and compliance,” a Binance spokesperson said.

Gambaryan added that Binance has increased its security and compliance staff by more than 500%, and that its team is “probably the strongest in the whole of finance.”

The Justice Department had no immediate comment.