According to Bloomberg report, the US Department of Justice (DOJ) is investigating the world’s largest crypto exchange, Binance, for yet another potential use of alleged criminal activity. This time, US authorities are investigating whether Russian agents are using the platform to evade financial sanctions.
Taxed on the country in 2022 to invade Ukraine, Russia has allegedly been moving money through Binance. The report cites five people familiar with the matter. The DOJ’s National Security Division is leading the investigation.
Binance faces another US investigation
So far, US authorities have been unable to determine whether Russia used the platform or whether someone at Binance helped the country avoid sanctions. In this regard, the DOJ is conducting two investigations against the crypto company, the other being led by the criminal division of the DOJ.
How reported last year, the criminal investigation into the world’s largest stock exchange could see the company and senior executives charged with anti-money laundering violations. The company is currently in discussions with the DOJ and US authorities to resolve these allegations, including whether US adversaries are using it to evade sanctions.
The report quotes a statement from the company about these investigations and their compliance with international law:
In 2021, Binance launched an initiative to completely overhaul its corporate governance structure, including bringing in a group of experienced top executives to fundamentally change the way Binance operates globally. Our policy enforces a zero-tolerance approach to double registrations, anonymous identities and dark money sources.
Almost all major US regulators have their eye on Binance for similar reasons, but the exchange continues to try to clear its name. Today, Binance founder and CEO Changpeng Zhao celebrated the company’s involvement in an investigation that arrested the perpetrators accused of child abuse, drug trafficking and public corruption.
The crypto exchange released a six-part documentary showing cooperation with international authorities in various jurisdictions. The company’s head of financial crime compliance, Tigran Gambaryan, he stated the following on links to crypto and criminal activities:
The myth that cryptography is anonymous enabling illicit activity is actually quite the opposite. The fact that transactions are publicly recorded leaves a permanent record of what actually happened. Investigators using investigative tools, their investigative power, legal subpoena, actually have an easier time, in many cases, identifying who is conducting these activities than they would in a traditional financial investigation.
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