At the end of 2020, Binance was asked to submit internal documents relating to the firm’s actions to ensure anti-money laundering, according to Reuters. The investigation was first reported last year, however, not much information was available about it until now.
The crypto exchange was asked to hand over messages from CEO Changpeng Zhao and 12 other executives on matters including the exchange’s detection of illegal transactions.
It also sought any company records with instructions that “documents be destroyed, altered, or removed from Binance’s files” or “transferred from the United States.”
Patrick Hillmann, the crypto paltform’s communications chief, said: “Regulators across the globe are reaching out to every major crypto exchange to better understand our industry. This is a standard process for any regulated organization and we work with agencies regularly to address any questions they may have.”
Changpeng Zhao tweeted on Thursday “Another story today about a crypto company receiving an inquiry from a regulator. A request to VOLUNTARILY share certain information back in 2020, which we did. Important for the industry to build trust with regulators. My chat messages are semi-public anyway.”
The billionaire then went on to tweet again emphasising: “Stay in front, stay transparent.”
According to the response received on his tweets, it seems like Zao has received immense support from Binance users and supporters worldwide.
Reuters found that the gaps in Binance’s compliance program enabled criminals to launder at least $2.35 billion in illicit funds through the exchange, which also served traders in Iran despite U.S. sanctions.
Until mid-2021, Binance customers could trade crypto by registering with just an email address. In addition to the Justice Department request, the Securities and Exchange Commission (SEC) also issued a subpoena to Binance.
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