U.S. Asking Binance To Provide Records Of Cryptocurrency Laundering Checks

Federal prosecutors in the United States have requested that Binance, the world’s largest cryptocurrency exchange, give comprehensive internal information about its anti-money laundering checks and communications with its CEO and founder, Changpeng Zhao.

According to Reuters, the Justice Department demanded that CZ and 12 other exchanges and partners turn over messages detailing how the exchange handles illicit transactions and recruits US consumers in December 2020.

It also requested that the business give information on files designated as “documents [to] be destroyed, altered, or removed from Binance’s files” or “transferred from the United States.” According to the article, prosecutors demanded 29 papers dating back to 2017 regarding the company’s management, structure, finances, business, and compliance methods.

The request was made as part of an investigation of the exchange’s adherence to US financial legislation. According to many sources familiar with the situation, US officials were investigating whether Binance had broken the Bank Secrecy Act. According to the law, crypto exchanges must register with the Treasury Department and follow anti-money laundering procedures. A violation of the legislation can result in a ten-year prison sentence.

In response to Reuters’ request for comment, Binance chief communications officer Patrick Hillmann stated that reaching out to regulated crypto groups was “a standard process.”

“We work with agencies regularly to address any questions they may have.”

CZ also confirmed the claims made in the report on Twitter Thursday:

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