The office has reportedly sent subpoenas to investment companies requesting documents related to their conversations with Binance over the past several months. While no charges have been filed yet, prosecutors are considering a potential settlement.
Binance's Compliance History Under Scrutiny
Legal experts have noted that Binance has a history of avoiding rules and exploiting legal loopholes to operate globally. In the past, the exchange's lack of identification requirements raised concerns among legislators about its potential involvement in money laundering.
Under the Bank Secrecy Act, crypto exchanges that conduct "substantial" business in the US must register with the Treasury Department and follow anti-money laundering guidelines. Binance's Chief Strategy Officer, Patrick Hillmann, has acknowledged that the company took a lax stance on compliance in its early years but has since invested heavily in compliance initiatives.