According to a report in the Washington Post on January 7th, US federal prosecutors have issued subpoenas to several hedge funds that had dealings with cryptocurrency exchange Binance.
The subpoenas in question reportedly directed the hedge funds to hand over records of any communication with Binance. The Washington Post said that the information was disclosed by two anonymous sources who had reviewed one of the subpoenas.
These recent developments are part of an ongoing investigation into whether Binance has violated anti-money laundering regulations, in particular the Bank Secrecy Act, which requires firms to verify the identity of their customers, as well as report suspicious activity which might be related to money laundering or tax evasion.
The Post also clarified that the subpoenas do not necessarily mean that Binance will be charged – prosecutors are considering a settlement with the crypto exchange.
Patrick Hillmann, Binance’s Chief Strategy Officer told the post that the company has “heavily invested in compliance programs” and worked closely with law enforcement to combat money laundering on its crypto trading platform.