Federal Probe Into Binance: U.S. Authorities Now Summons Hedge Funds

Key Points:

• Federal prosecutors are looking into the operations of American hedge funds with cryptocurrency exchange Binance.
• In an interview, Binance chief strategy officer Patrick Hillmann said the company is talking to virtually every regulator across the globe on a daily basis.

According to the Washington Post, American officials are demanding information from investment companies about the cryptocurrency exchange Binance.

According to the article, the Western District of Washington U.S. attorney’s office recently sent subpoenas to American hedge firms in order to investigate their connections to the cryptocurrency exchange.

Legal experts warned that just though there have been subpoenas issued, it does not always guarantee that charges would be filed. As they consider whether they have enough evidence to file charges against Binance, prosecutors are still talking about a potential settlement with the firm.

Patrick Hillmann, chief strategy officer at Binance, stated in an interview that the business speaks with “virtually every regulator across the globe on a daily basis,” but he would not elaborate on the state of any American probe. Justice Department spokesperson Joshua Stueve similarly refrained from making any comments.

The investigation into Binance is taking place as the cryptocurrency market is experiencing extreme uncertainty. Concerns about the rogue, mostly unregulated internet markets where digital assets are purchased and traded have increased in response to the collapse of FTX, a well-known trading platform that police claim was the victim of a multi-year fraud operation against investors.

As the spotlight shifts to Binance, the world’s largest crypto exchange, Zhao is doubling down on his criticism of FTX and positioning himself as an advocate for stronger industry regulation.

Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing.

Zhao said in November at a conference in Indonesia.

Binance’s Hillmann said that the company’s approach to regulatory compliance was lacking in the early years of its fast development. However, he claims that Binance has recently aggressively invested in compliance procedures, collaborated with law enforcement, and created new technologies for capturing criminals on its network.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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