Binance probed by U.S. federal prosecutors for sanctions violations: Bloomberg
U.S. federal prosecutors are investigating Binance to determine if the crypto exchange violated sanctions laws by allowing prohibited trading. This probe follows a previous $4.3 billion settlement for banking compliance violations and ongoing scrutiny regarding the platform's cooperation with law enforcement.
Why it matters
As the world's largest crypto exchange, Binance's regulatory compliance is a critical indicator of the broader digital asset industry's legal standing and security standards.
The U.S. attorney’s office in Manhattan is responsible for the investigation into the world’s largest crypto exchange’s compliance efforts, according to the people, who asked not to be identified.
The Department of Justice’s criminal division in Washington, D.C. is collaborating with the investigation aimed at discovering whether Binance allowed trading to proceed despite being aware that it violated sanctions laws, one of the people said.
"We maintain a zero-tolerance policy for sanctions violations,” a Binance spokesperson said by email. “We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors."
The Justice Department and Manhattan's attorney’s office did not immediately respond to a CoinDesk request for comment.
Binance has been on the U.S. government’s radar in the past. It pleaded guilty to banking compliance violations in 2023, when it agreed to pay $4.3 billion in fines.
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