According to a Bloomberg report, the U.S. Department of Justice’s national security division is looking into whether Binance allowed Russian customers to access the exchange in defiance of American sanctions related to Russia’s invasion of Ukraine.
Binance Under Investigation for Sanctions Violations Again
A request for comment from Bloomberg was denied by the Justice Department. According to the exchange statement to Bloomberg, the business complies with all financial sanctions imposed by the United States and other countries.
On the other hand, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against the exchange in March, saying that the business willfully violated federal law by offering unregistered cryptocurrency derivative products in the U.S.
Dark Clouds Hang Over Binance
Following a joint investigation by the Internal Revenue Service and the Justice Department against the international exchange in 2021, the Justice Department probe is another prominent step against the exchange. Since at least the beginning of 2022, the U.S. Securities and Exchange Commission (SEC) has been looking into the exchange’s connections to two businesses that Changpeng Zhao, the company’s founder, owns.
Precautions Taken by the Exchange
According to Binance’s head of financial crime compliance, Tigran Gambaryan, the 700-person team “handles 1,300 law enforcement requests on a weekly basis.” He also made this claim at CoinDesk’s Consensus conference last week.
