Cryptocurrency broker Binance is being investigated by the Internal Revenue Service (IRS) and the United States Department of Justice (DOJ), according to an article by Bloomberg.
DOJ and IRS officials “seek information from people with knowledge about Binance’s business”, citing anonymous sources. Bloomberg noted that “federal agencies do not accuse Binance of acting in bad faith”.
In March, Bloomberg had reported that Binance was being investigated by the Commodity Futures Trading Commission (CFTC) over whether the broker had allowed American residents to trade on its platform.
Minutes after the Bloomberg article made the headline, Changpeng Zhao (CZ), CEO of Binance, tweeted:
“There is a lot of fear, uncertainty and doubt today. It is bad for some, but an opportunity for others ”. This message was similar to one he published after the March Bloomberg article.
So much FUD today.
It's a pain for some, an opportunity for others.
— CZ 🔶 Binance (@cz_binance) May 13, 2021
“We take our legal obligations very seriously and talk to regulators and authorities in a collaborative way,” a Binance spokesman told The Block.
“We work hard to create a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and deal with suspicious activity. We have a strong track record of assisting law enforcement agencies around the world, including the United States. We do not comment on specific questions or investigations. ”
In recent months, Binance has sought to strengthen its legal advisory team. In March, Binance hired former Senator Max Baucus as its regulatory adviser and then added two former members of the International Financial Action Group (FAFT-GAFI) to its consultancy team.
Binance is being supervised in Europe because of its stock tokens (or “stock tokens”) service. The offer prompted regulators to issue a public alert in Germany.