The US investigates largest Crypto Exchange Binance against illegal trading activities in the United States

By: Blessing ugbechie

May 14, 2021 6:39 AM

Binance known as one of the major cryptocurrency exchange has been reportedly under investigation by the United States department of justice and Internal Revenue Service to prevent the activities of illegal trading activities from users in the United States.

According to research and reports from unknown sources who requested anonymity, both departments of the United States with officials are investigating Binance, seeking information from individuals with the knowledge of crypto exchange business.

CZ had said that Binance closely follows the U.S rules, blocks Americans from its website uses advanced technology to analyze transactions for signs of money laundry and illegal activities. The firm warned the U.S residents about their accounts being frozen if they were found to be trading.

Binance spokesman, Jessica Jung said in an emailed statement “we take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion, also, we have worked hard to build a robust compliance program that incorporates anti-money laundry principles and tools used by financial institutions to detect and address suspicious activities”

The United States officials expressed their concerns  that cryptocurrencies are being used to conceal illegal transactions, drugs and theft. Americans who have unexpectedly made a large amount from betting on the market’s sudden rise are evading taxes.

As a result of the investigation, prices of major cryptocurrencies dumped. BTC dumped 3.8% at the rime of publication while ETH experienced a more massive price dump more than 5%.