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Binance digital trading platform under investigation for money laundering

Binance investigation

Cryptocurrency trading platform Binance is undergoing a secret investigation in the United States on charges related to money laundering, Bloomberg said.

Theagency said Binance, the largest digital currencies exchange, is under investigation by the Department of Justice and the tax authority in the United States of America.

According to the agency, the investigation aims to prevent any illegal efforts and activities in the digital market, which are not governed by organization or people.

Binance undergoes investigation

Citing sources familiar with the matter, Bloomberg said investigators of money laundering and tax evasion crimes are seeking information from individuals with a deep knowledge of Binance’s business. The investigation is subject to strict secrecy.

It should be noted that Binance has managed to outperform its competitors in cryptocurrency trading platforms since its inception in 2017, led by Shang Peng Zhao, the charismatic CEO and promoter of tokens on Twitter.

The company has largely succeeded outside government oversight as Binance was incorporated in the Cayman Islands and has an office in Singapore.


Chainalysis, a forensic firm that works with blockchain technology and whose clients include US federal agencies, concluded last year that among the transactions it examined, more money related to criminal activity flowed through Binance than any other cryptocurrency exchange.

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” a spokesperson for Binance said in an email, adding that the company does not comment on specific matters or inquiries.

“We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity,” the spokesperson added.

Spokespersons for the Department of Justice and the US tax authority declined to comment on the matter.

On May 7, 2019, Binance revealed that it was the victim of a “widespread security breach” in which hackers stole 7,000 Bitcoins worth about $40 million at the time.

CEO Shangping Zhao said the hackers have used a variety of technologies, including phishing, viruses and other attacks and have organized their transactions in a way that has passed our current security checks.

Keep reading: Customers Of Some U.S. Banks Will Be Able To Buy, Hold And Sell Bitcoin Soon


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