Federal prosecutors sought access to CEO Changpeng Zhao’s communications records to investigate the exchange’s anti-money laundering fight. According to Reuters, Binance is currently under investigation for possible violations of the Bank Secrecy Act. The altcoin price, meanwhile, responded to the news with a drop.
US Justice Department investigating Binance CEO
Federal Prosecutors are investigating Changpeng Zhao, the world’s largest crypto exchange and its CEO. The money laundering division of the US Department of Justice requested CZ’s communications regarding illegal transactions. He also requested information on recruiting US Customers. As you follow on Kriptokoin.com, US Prosecutors first requested the communication records of Binance CEO Changpeng Zhao in late 2020. The money laundering division of the US Department of Justice continues its investigation into the world’s largest crypto exchange, according to Reuters.
Prosecutors asked Binance to voluntarily deliver messages about illegal transaction detection and recruiting US customers. CZ and twelve other Binance administrators and partners are also included in the message and communication request. Sources close to the matter say US authorities are investigating whether Binance violated the Bank Secrecy Act. According to this law, crypto exchanges that conduct important business in the US are required to register with the Treasury. They must also comply with anti-money laundering guidelines. Meanwhile, prison sentences are provided for those who violate the Bank Secrecy Act. Regarding the matter, a Binance spokesperson said:
This is a standard process for any regulated entity. We work regularly with agencies to address pending questions. Binance has an industry-leading global security and compliance team with over 500 employees.
In the first reaction to the news, the altcoin price fell
In response to the development, the altcoin price dropped. At press time, BNB lost about 1.7% on a daily basis. The altcoin, which lost 8.3% on a weekly basis, was trading at $ 277.7. However, analysts predict further declines in BNB price. A crypto analyst alias NekozTek has spotted a short opportunity on the BNB price chart.
BNB price chartThe analyst admitted that he took the opportunity to short for CZ. The Binance CEO is likely to make a comment on the investigation and how the exchange is handling it. According to experts, it is possible that transparency fuels the bullish sentiment among holders.
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