Binance, the world’s largest crypto exchange is under investigation by the IRS and DOJ

The latest Bloomberg News report shows that Binance, the world’s largest trading platform for cryptocurrencies like Bitcoin and Ethereum, is being investigated by the US Department of Justice and the Internal Revenue Service.

The US government is reportedly interested in using cryptocurrencies for money laundering and other illegal activities. Still, Binance CEO Changpeng Zhao said that the Bloomberg story was completely wrong in a tweet early Friday.

Without directly acknowledging the story, Zhao said on Twitter that Binance “cooperated with law enforcement agencies to combat bad actors” but suggested that the story “makes it look like a bad thing to some extent.”

It is unclear if any work that Zhao suggested he do with US law enforcement agencies necessarily means that Binance will not be investigated. In other words, Binance can cooperate with the US police under investigations by the US Internal Revenue Service and the Department of Justice. 

Binance is officially banned in the United States because it sells securities that are not registered with American regulators. The company insists that it tries to prevent Americans from using the platform. However, as Block has pointed out in the past, as has been pointed out by encrypted news sites, the only barrier to Americans getting an account is clicking a button to indicate that they are not American. It’s a bit like a porn site where users can be guaranteed to be 18+ by clicking a button. 

Binance was founded in China, but because the CCP banned many cryptocurrency transactions, it moved its business out of the country in 2017. According to Bloomberg News, Binance has an office in Singapore but is now incorporated in the Cayman Islands, a UK-controlled territory. Many companies (even if only on paper) also establish businesses to avoid paying taxes. Binance said in a prepared online statement: “We work seriously and cooperate with regulators and law enforcement agencies. 

“We have been working hard to establish a robust compliance program combining principles against money laundering and the use of financial institutions and solve problems. ”Binance continued. “We have a good record of assisting law enforcement agencies around the world, including the United States.”

1 thought on “Binance, the world’s largest crypto exchange is under investigation by the IRS and DOJ”

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