US Hedge Funds Receive Subpoenas Over Communications With Binance As Investigators Probe Crypto Exchange: Report

Binance, the world’s largest crypto exchange, is reportedly being investigated by federal prosecutors, which has led to multiple American hedge funds being subpoenaed by the Western District of Washington in Seattle.

According to a report from the Washington Post, investment firms in the US have been directed by prosecutors to hand over records of their communications with Binance.

Buy physical gold and silver online

The Washington Post cites two people who reviewed the subpoenas and spoke on the condition of anonymity.

Binance chief strategy officer Patrick Hillmann told Washington Post that the exchange is talking to “virtually every regulator across the globe on a daily basis,” but declined to make specific comments.

John Ghose, a former Justice Department prosecutor who specialized in cases involving digital assets, told the Washington Post that he believes prosecutors are looking at whether Binance violated the Bank Secrecy Act, which requires financial institutions to verify the identities of their clients and flag suspicious activity.

Ghose also said that the subpoenas could suggest that investigators are looking into Binance’s relationship with US investors, though the former prosecutor doesn’t have firsthand knowledge of the situation.

“The basis of those charges is whether there are US customers… If there are US customers, there are charges for avoiding the money laundering requirements.”

The head of one of the hedge funds based in New York with $2.5 billion in assets under management told the Washington Post that his firm trades on Binance through corporate entities outside the United States.

The fund manager reportedly said that even though Binance prohibits US citizens from its platform, “corporations and citizens are very different.”

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/antishock

The post US Hedge Funds Receive Subpoenas Over Communications With Binance As Investigators Probe Crypto Exchange: Report appeared first on The Daily Hodl.

About the author

Why invest in physical gold and silver?
文 » A