Reuters: US authorities requested Binance CEO records for money-laundering probe

U.S. prosecutors requested internal information from the cryptocurrency exchange Binance about its anti-money-laundering checks, as well as messages involving CEO Changpeng Zhao. Reuters reports.

The request, obtained by the agency, was made by law enforcement in December 2020.

The Justice Department’s Money Laundering Section allegedly asked Binance to voluntarily hand over messages from Zhao and 12 other executives and partners regarding the exchange’s efforts to identify illicit operations and recruit customers in the United States.

The DOJ’s division also sought any records of the company with instructions to “destroy, alter or delete documents from Binance’s files” or “transmitted from the United States.”

Reuters sources explained that the DOJ’s request was part of an ongoing investigation into Binance’s compliance with U.S. financial crime laws.

Authorities are also looking into potential violations of the Bank Secrecy Act by Binance. Its provisions require firms to register with the Treasury and comply with anti-money-laundering rules if they conduct “substantial” business in the United States.

The legislation protecting the country’s financial system provides for prison terms of up to 10 years, Reuters noted.

“Regulators around the world are turning to every major crypto exchange to better understand our industry. This is a standard process for any regulated company. We are constantly working with authorities to address any questions they may have,” Binance’s chief public relations officer Patrick Hillmann said in response to questions about the investigation.

According to him, the security and compliance team numbers 500 people, including former regulators and law enforcement officers, Hillmann added.

In January Reuters wrote that Binance has repeatedly hidden information from regulators, neglected KYC procedures and acted contrary to the recommendations of the compliance department.

In June, agency analysts said that during 2017–2021, illicit actors laundered at least $2.35 billion through Binance не менее $2,35 млрд.

Earlier, Indian authorities suspected the WazirX exchange of money laundering involving more than $350 million на сумму более $350 млн.

Zhao said there was no link between his company and the Indian crypto trading platform. According to him, the deal did not take place.

WazirX co-founder Nischal Shetty denied a number of statements by Binance’s chief regarding the platform’s relationship.

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