U.S. prosecutors have requested documents from Changpeng “CZ” Zhao and other executives at Binance regarding the exchange’s compliance with anti-money laundering checks and its handling of communications related to compliance issues. Zhao confirmed that his team voluntarily provided the requested files. Binance has previously denied allegations made by Reuters regarding its business practices. The request from the U.S. Justice Department included documents labeled as “documents [to] be destroyed, altered, or removed from Binance’s files” or “transferred from the United States.” The prosecutors specifically asked for records detailing Binance’s anti-money laundering checks and messages involving CEO Changpeng Zhao. They also requested information on the exchange’s management, structure, finances, business, and compliance practices dating back to 2017. The request is part of an investigation into Binance’s compliance with U.S. financial regulations, particularly the Bank Secrecy Act. Compliance with this act requires crypto exchanges to register with the Treasury Department and adhere to anti-money laundering regulations. Violation of the act can result in a 10-year prison sentence. Binance’s chief communications officer, Patrick Hillmann, characterized the request as a standard process for regulators to reach out to regulated crypto organizations. Zhao confirmed the claims made in the Reuters report on Twitter, stating that the exchange had voluntarily provided the requested information. He emphasized the importance of building trust with regulators in the industry. Reuters has published several investigative pieces making damaging allegations against Binance in the past year. However, Binance has consistently refuted these claims. The exchange has faced intense regulatory scrutiny in 2021 and has implemented measures to comply with regulators, including reducing leveraged trading options and implementing stricter identification checks for account registration. Binance is currently the world’s top cryptocurrency exchange, processing around $60 billion in daily volume.
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