The Department of Justice and the US Internal Revenue Service have launched an investigation against the crypto exchange Binance, Bloomberg reports, citing sources familiar with the situation.
The investigation into the crypto exchange is being conducted by agencies that specialize in money laundering and tax crimes. Representatives of the Ministry of Justice and the Tax Service declined to comment on the publication. The reasons for the investigation have not yet been reported.
“We take our legal obligations very seriously and work with regulators and law enforcement agencies,” Binance spokeswoman Jessica Jung told the agency.
Blockchain forensic firm Chainalysis, whose clients are US federal agencies, concluded last year that Binance had more criminal-related transactions among its transactions than any other crypto exchange.
The US authorities have expressed concern that cryptocurrencies are being used to hide illegal transactions, including theft and drug trafficking, as well as for tax evasion.
Binance was founded in 2017 and is now one of the largest crypto exchanges in the world. Since September 2019, the exchange has started trading futures for six cryptocurrencies (Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash and EOS).
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