US officials are investigating hedge fund-Binance money laundering relationships.
The subpoenas follow media and regulatory scrutiny of Binance, the world's largest crypto business, over its operations and finances.
Exchange Binance are being investigated by US authorities for potential money laundering offences.
Federal authorities are currently investigating into Binance's connections with American hedge funds as part of a lengthy investigation into possible money-laundering laws violations at one of the top crypto firms in the world. According to the most current sources, the Western District of Washington U.S. Attorney's Office has issued subpoenas for investment businesses to produce information on their dealings with the leading cryptocurrency exchange Binance.
The issuance of the subpoenas coincides with increased media and regulatory authority scrutiny of Binance, the world's largest crypto company, regarding its operations and finances. By the end of the previous year, this criticism had reached a fever pitch with the multi-billion dollar collapse of FTX, which had shaken investors' confidence in an ever-volatile and unsteady crypto market.
However, according to legal experts, the U.S. authorities are still reviewing the available evidence and currently in negotiations for a potential settlement with Binance, this suggests that the allegedly issued subpoenas are not intended to be used to bring legal action against the questioned cryptocurrency exchange or the hedge funds.
Binance's Chief Strategy Officer Patrick Hillmann said in an interview that the exchange had ongoing communication with almost "every regulator across the globe," but he did not clarify on the status of any investigations that may be taking place in the US.
Legal experts claim that Binance has amassed quite a (in)famous reputation over the years by successfully skirting laws and taking use of legal loopholes to maintain its operations in a number of nations. Legislators were concerned about the platform's involvement in money laundering because the company had never demanded that users present any form of identity, such as a formal KYC, in the past. Last year, the prominent media site said that the crypto behemoth has ties to the Russian dark web marketplace Hydra, which it described as a "hub for hackers, fraudsters, and drug traffickers."
Binance, on the other hand, aggressively refuted the charges and publicly protested the article by issuing a formal statement and a blog from the business's official Twitter account.
Recently, Binance has made measures to strengthen its commitment to compliance. The exchange made desperate attempts to increase the size of its security and compliance department's employees by a factor of 500% in 2022.
