Reuters reports that Binance was requested to disclose internal documentation at the end of 2020 regarding the company’s anti-money laundering policies. The probe was first mentioned last year, but until recently, little was known about it.
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 platform’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 emphasizing: “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.
Customers of Binance could trade cryptocurrency up until the middle of 2021 by registering with just an email address. The Securities and Exchange Commission (SEC) subpoenaed Binance in addition to the Justice Department’s request.
