US Authorities Investigate Possible Illegal Connections to Binance Exchange

According to the Washington Post, legal authorities in Seattle have issued subpoenas demanding that investment firms connected to Binance provide records connected to their communications with the company. However, it is not certain that this may result in prosecutors bringing charges against Binance, as they are still considering the possibility of arriving through a settlement and determining if there is enough evidence for an indictment.

As part of a larger investigation, the Securities and Exchange Commission (SEC) sent subpoenas to Binance, the world's biggest crypto exchange, regarding the potential violation of money laundering laws. This was first reported by Bloomberg in June last year. Additionally, The SEC is looking into the original offering of BNB, Binance's token, from 2017 to see if it was an unregistered security offering. The news has worried some in the cryptocurrency industry, especially in light of the closure of FTX, the world's third-largest crypto trading platform, due to its lack of regulatory compliance.

Patrick Hillmann, the Chief Strategy Officer of Binance, has acknowledged that the exchange was not always compliant with regulatory policies in the past, but indicated that it is now very serious about following them. He elaborated that the company has dedicated resources to ensuring that money that is laundered by criminals is frozen and returned. Hillmann also revealed that they are in constant contact with regulators around the world.

In December, news surfaced that Changpeng Zhao of Binance may face charges due to allegations of money laundering and other breaches in the U.S. The Department of Justice has been investigating the crypto exchange since 2018 for purportedly participating in illegal activities like money laundering, unlicensed money transmission, and criminal sanctions violations. Sources said a potential resolution between the DOJ and the attorneys for Binance is being discussed. It is worth noting that Binance is not the only large exchange facing accusations of violating money laundering laws. Recently, Coinbase accepted to pay $100 million to settle a lawsuit involving its lack of regulatory compliance.