The U.S. Justice Department is reportedly probing Binance for potential violation of sanctions imposed on Russia.
The DoJ’s national security division is investigating the exchange’s officials to determine if sanctions were evaded.
The exchange is already facing a criminal investigation over alleged illegal activities including money laundering.
The United States Department of Justice is reportedly probing the world’s largest crypto exchange for potential violation of sanctions imposed on Russia in light of the conflict in Ukraine. The purpose of the investigation is to determine if Binance Holdings Ltd. was illegally used to allow Russians to evade U.S. sanctions and move money through the crypto platform.
Binance Officials Under Scrutiny By DoJ
According to a report by Bloomberg, the Justice Department’s national security division is investigating Binance to see if the crypto exchange complied with the sanctions imposed on Russia following the invasion of Ukraine. Five people familiar with the matter told Bloomberg that the exchange’s officials are under scrutiny as part of the ongoing probe into the company’s conduct.
While the Justice Department declined to comment on the ongoing investigation, Binance told Bloomberg that the company was in full compliance with all U.S. and international financial sanctions. The exchange added that it has enforced industry leading know your customer (KYC) protocols in addition to a zero-tolerance policy for double registrations, anonymous identities, and obscure sources of money.
In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a world-class bench of seasoned executives to fundamentally change how Binance operates globally.”
statement from Binance
A person close to the investigation revealed that as of now there is no indication that the Department of Justice is preparing to agree to a settlement with the crypto exchange. However, not all probes lead to the filing of formal charges. The latest probe adds to an existing criminal and regulatory investigation into the exchange over its conduct. The news comes barely a day after Reuters reported that the exchange was entertaining accounts with links to terrorist organizations, including the Islamic State.