The United States Department of Justice is closing in on its investigation into Binance, a cryptocurrency exchange that was founded in 2018. A report According to Reuters, US prosecutors are at odds over whether the evidence collected is sufficient to bring criminal charges against the executive of the crypto exchange.
The 2018 investigation revolve around Binance’s compliance with the U.S. anti-money laundering (AML) laws and sanctions. The United States prosecutors were looking into charges related to unlicensed funds transmission, money laundering conspiracy, and criminal sanctions violations.
The report noted that Binance’s defense attorneys held meetings in recent months with Justice Department officials, and argued against any criminal proceedings.
Binance claimed that criminal proceedings against them could have a devastating effect on the crypto market during a prolonged market decline. According to the report, there were potential plea bargains.
A Binance spokesperson told Cointelegraph that the Reuters report suggests the regulators are doing a “sweeping review of every crypto company against many of the same issues” and added:
“This nascent industry has grown quickly and Binance has shown its commitment to security and compliance through large investments in our team as well as the tools and technology we use to detect and deter illicit activity.”
Due to strict regulatory requirements, Binance launched a dedicated crypto exchange in July 2017 for U.S. customers. However, the United States investigation in 2018 hampered the progress made by the exchange.
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A separate report from Reuters, published earlier in the year, accused the crypto-exchange of being a hot spot to launder money. Binance rejected all claims, suggesting that the report is cherry-picked data.
Binance’s struggle with compliance is nothing new, as the exchange has faced numerous warnings over the years from multiple jurisdictions. The exchange, however, has been able to overcome compliance issues in many countries, except the U.S., despite a slew o hirings to strengthen its regulatory compliance and team.