Crypto Exchange Binance Under Investigation for Money Laundering

• Popular crypto exchange Binance is under investigation by the U.S. Justice Department and the Internal Revenue Service

• The Cayman Island-based exchange has been accused of money laundering and tax evasion investigations

• The company has not been accused of any wrongdoing directly, but information is being sought from individuals about the exchange

There was huge FUD in the crypto market yesterday, amid rumors that the largest exchange by trading volume, Binance was under investigation by the US.

According to Bloomberg, the exchange is facing tax evasion and money laundering investigation from the U.S. Justice Department and the Internal Revenue Service.

Although the company has not been accused of any wrongdoing, information has been sought from individuals with knowledge about its activities.

The CEO of Binance, Changpeng Zhao as clarified the rumors, stating that the company follows the U.S rules by blocking Americans from its site.

The top exchange also created a separate app for America that adheres to the rules of the country.

The exchange also uses modern technology to monitor activities for any signs of money laundering.

Read also: 5 Common Bitcoin Scams and How to Avoid Them

Binance is located on Cayman Island and it has an office in Singapore but it is without a corporate headquarters.

According to research by blockchain forensics firm, Chainalysis Inc, more funds involved in illicit transactions are moved through Binance than any other exchange.

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