The world’s biggest crypto exchange is still in the sights of US authorities as hedge funds are subpoenaed.
It was reported by Reuters last month that the long-running investigation into Binance could result in criminal charges being levied against senior executives at the crypto company, including founder and CEO Changpeng Zhao.
However, the report also said that there could be a possible settlement in the case that sufficient evidence was not forthcoming. All this is taking place in the awful environment for crypto, which is potentially further fueling the flight of more investors from the sector.
An article in the Washington Post put forward the argument of Patrick Hillmann, Chief Strategy Officer for Binance. He said that Binance did have shortcomings in the past, but that the company had “invested heavily in compliance programs”, and that it was now working closely with law enforcement agencies around the globe. He said:
“Over the last two years, the company has completely changed its posture. Now that we have those resources, we are easily one of the most proactive parties to identify, freeze and get back funds”
John Ghose, a former Justice Department prosecutor, was also featured in the Washington Post article. He stated that it was his belief that when he was a prosecutor Binance did not have a good reputation.
In relation to whether Binance had allowed money laundering, tax evasion, or other crimes to take place on its platform, he said:
“The basis of those charges is whether there are U.S. customers. If there are U.S. customers, there are charges for avoiding the money laundering requirements.”
Could the Binance FUD topple crypto?
Given that Binance is easily the biggest crypto exchange in the world by trading volume, for it to fall would arguably have a simply huge knock-on for the rest of the crypto industry.
A collapse of the exchange could have dire consequences that could put the industry back years, making transacting in cryptocurrencies that much more difficult, as well as removing a very large investor in the space.
With all the furore surrounding the FTX debacle, the various bankruptcies of other crypto companies etc., now is a very bad time for crypto, and a very good time for authorities to turn the screw and attempt to subjugate, if not almost eliminate private digital asset transactions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.