US Prosecutors Subpoena Hedge Funds in Binance Anti-Money Laundering Probe

• US prosecutors have issued subpoenas to hedge funds for records of their dealings with Binance.
• This is part of an ongoing investigation into potential violations of US anti-money laundering laws by Binance.
• Experts have expressed frustration with Binance due to its lack of know-your-customer (KYC) requirements, which could have been a conduit for criminals to launder money.

The US attorney’s office for the Western District of Washington has recently issued subpoenas to hedge funds in an effort to obtain communication records with Binance, one of the world’s leading crypto exchanges. This is part of an on-going investigation into potential violations of US anti-money laundering laws by Binance.

Earlier in December, Reuters reported that prosecutors were discussing a potential settlement with Binance. While Binance CEO Changpeng Zhao (CZ) denied that the exchange was working with the Department of Justice to settle matters out of court, legal experts have expressed their frustration with Binance. According to John Ghose, a former Justice Department prosecutor specializing in crypto cases, Binance’s lack of know-your-customer (KYC) requirements for years made it a conduit for criminals to launder money.

In response to this, Binance implemented KYC requirements in August 2021. This was done in an effort to increase transparency and reduce the risk of illegal activities. Additionally, Binance has also announced plans to launch a new “Compliance Hub” which would focus on providing an end-to-end regulatory compliance service.

Despite this, US prosecutors continue to investigate Binance for any potential violations of US anti-money laundering laws. It remains to be seen how this ongoing investigation will play out and what the consequences will be for the exchange. Either way, it is important for crypto exchanges and other financial institutions to ensure that they are compliant with all applicable laws and regulations. Failure to do so could lead to serious consequences.

Dieser Beitrag wurde unter Blog veröffentlicht. Setze ein Lesezeichen auf den Permalink.