Binance Faces Federal Investigation by Money Laundering and Tax Evasion Sleuths
Major cryptocurrency exchange Binance Holdings Ltd is currently under investigation by the Internal Revenue Service and the Justice Department, as the US government ramps up efforts to uncover illicit activity that has been thriving in the largely unregulated digital currency market.
According to Bloomberg, which cited sources familiar with the confidential probe, government officials have been seeking information from individuals familiar with Binance’s business dealings, over suspected money laundering and tax evasion. Binance, which is incorporated in the Cayman Islands but lacks corporate headquarters despite having an office in Singapore, has gone relatively unscathed from government oversight thus far.
The latest news have sent more shockwaves throughout the crypto market, as prices were already subject to volatility following an onslaught of Tesla CEO Elon Musk’s bitcoin and dogecoin tweets. Regulators have long been concerned about the use of cryptocurrencies in illegal activities, given their opaque nature.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
