Sources: Binance is under investigation by DOJ and IRS; officials involved include those who probe money laundering and tax offenses
- Justice Department, IRS seek information about crypto exchange — The federal agencies haven't accused Binance of wrongdoing
BloombergTom Schoenberg
Context & Ripple Effects
This inquiry sits at the start of a prolonged U.S. scrutiny arc around Binance. Related coverage says the DOJ had sought extensive anti-money-laundering records and Zhao communications in late 2020, while later reporting describes the investigation broadening beyond the initial enforcement focus.
The significance is not an allegation of guilt: the agencies had not accused Binance of wrongdoing. But the matter gave criminal and tax-enforcement authorities an information-gathering foothold that later overlapped with a CFTC review of trading conduct and sanctions-related questions.
First-order effects
Binance must respond to information requests from the DOJ and IRS while managing scrutiny from officials focused on money-laundering and tax offenses.
The DOJ and IRS gain a basis to assess Binance’s controls and communications without having yet brought an accusation against the exchange.
Second-order effects
The inquiry increases the chance that Binance faces coordinated scrutiny across enforcement theories, as later coverage tied the criminal probes to CFTC concerns over alleged insider trading and market manipulation.
Binance’s compliance practices become central to its U.S. operating risk, particularly as the DOJ’s later sanctions inquiry examined whether the exchange was used to skirt restrictions.
Third-order effects
If multi-agency investigations become the standard route for large crypto venues, exchange competitiveness will increasingly depend on demonstrable compliance and cooperation with enforcement requests.
The later concern that an indictment could trigger an exchange run akin to FTX’s points to a structural tension: authorities must weigh enforcement choices against the market disruption that action against a major venue can cause.
The trend: Crypto exchanges are moving from lightly bounded platforms toward regulated financial intermediaries tested simultaneously on anti-money-laundering, tax, market-conduct, and sanctions controls.
We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. (1/3) https://twitter.com/...
@calvinayre
Calvin Ayre on x
hahaha...as I have long predicted, all companies involved in delist attack on BSV end up being involved in crime....Binance is the most criminal actiity in crypto. https://www.bloomberg.com/...
@hackermanace
Ace on x
Wow this has to be the best response ive seen Binance give over the past couple years. Good for them, im sure things will be fine. https://twitter.com/...
@alexsvanart
Alexander Svan on x
Don't tell me Elon didn't know something 😉 Just don't https://twitter.com/...
@campuscodi
Catalin Cimpanu on x
No surprise here. Chainalysis previously reported that ransomware gangs often use Binance and Huobi accounts to launder their earnings https://twitter.com/...
@joshtpm
Josh Marshall on x
this makes it seem like crypto currencies are mainly for money laundering and criminal syndicates https://www.bloomberg.com/... via @markets
@mc_of_a
Michael Caley on x
look be fair it's now mostly for speculation but among people actually using crypto as a currency.... yeah it's basically for crime https://twitter.com/...
@dwarf_mamba
Evan on x
They wanna know how to run an economy. Fucking morons don't know how to so they're scared. https://twitter.com/...
@mustachetommy
@mustachetommy on x
When did the USA government dictate how crypto should be operated or manage in other countries? China banned #bitcoin in 2017 when it was $3,000 USD. Now it is $48,000. The U.S.A government can try to attack crypto, but the crypto community will fight back. You can not stop us ht…
@rulexrp
@rulexrp on x
#xrpcommunity Uh Oh @binance Binance Faces Probe by U.S. Money-Laundering and Tax Sleuths (1) https://news.bloombergtax.com/ ...
@jeffjohnroberts
Jeff Roberts on x
Bloomberg is killing it on crypto crime reporting. The details they dug up here are crazy https://www.bloomberg.com/...
@saxena_puru
Puru Saxena on x
Just another day in the world of crypto - Cryptocurrency exchange Binance is under investigation by the Justice Department and the IRS - https://www.bloomberg.com/... via @markets
@crypt0snews
Omar Bham on x
If Binance is cooperating fully with investigations from the Department of Justice, AND the IRS, then this probably means Binance is likely giving up user info in the name of tax evasion / money laundering. It's a disappointing reality. It is what it is. https://www.bloomberg.com…
@adamsinger
Adam Singer on x
“funds are safe” https://www.bloomberg.com/...
@danprimack
Dan Primack on x
This has been a really bad week for crypto. https://t.co/pG96iL597O