According to an online media report, on September 1, US federal prosecutors requested Binance to provide the communication records of Binance CEO, Changpeng Zhao, along with details of its anti-money laundering checks, as per a written request in late 2020.
According to a report, the money laundering division of the US Justice Department asked a crypto exchange to deliver information about its illegal transaction deduction and enrollment of US clients.
The communication records of Zhao and 12 other representatives and partners were requested by prosecutors, with messages instructing employees that “documents be removed, altered, or destroyed from Binance’s file” or “moved from US.”
The request was made in late December 2020, corresponding to a department investigation concerning the exchange’s compliance with financial crime laws of the US.
Moreover, sources proceeded to say, authorities of the US department are researching whether Binance might have violated the Bank Secrecy Act.
Under the bank secrecy act, a digital currency exchange that has conducted significant business in the US should register itself with the Treasury Department and agree to anti-money laundering rules. Infringements of the act could bring jail sentences of up to 10 years to culprits.
Binance CCO Officer, Patrick Hillmann, said, “All over the world, regulators are establishing connections with the crypto exchanges to better understand the industry.”
“This is the standard process for any regulated authorities and we work with agencies regularly to resolve any inquiries they might have,” the Officer said.
Hillmann further added that “with more than 500 employees, incorporating law enforcement agents and former regulators, Binance has an industry-leading global security and compliance team.”