According to a report by Washington Post, federal prosecutors are looking into the ties between Binance and hedge funds in the United States as part of a larger probe into the cryptocurrency exchange’s suspected violation of money-laundering regulations.
According to the article, there are two anonymous people who have examined one of the subpoenas and have agreed to discuss the sensitive topic on the condition that they remain nameless.
In addition, the article states that the subpoenas do not indicate that the investigators will file any charges against anybody.
The prosecution is now debating the possibility of reaching a settlement with Binance and determining whether or not they have sufficient evidence to file criminal charges against the firm.
The subpoenas do not necessarily indicate that the authorities will file charges against Binance or its founder and CEO Changpeng Zhao “CZ,” as observed by the Post.
Federal officials are still reportedly considering a possible settlement with Binance and are evaluating whether the information they have is adequate to press charges.
The crypto empire has taken attempts to strengthen its dedication to compliance, and the exchange has lately been engaged in crypto lobbying in Washington, DC, suggesting a desire to strengthen ties with the U.S. government.
Binance Under Controversies
The subpoenas have been issued at a time when Binance, the biggest cryptocurrency exchange in the world measured by daily trading volume, is under increasing scrutiny from the media as well as the regulatory authorities on its business methods and financials.
Recent events have caused widespread fear, uncertainty, and doubt about the exchange as a consequence of these regulatory investigations.
Over the course of seven days, the company run by CZ handled withdrawals totaling over $6 billion while also facing scrutiny over its stability.
Binance has, despite the present market circumstances and the record-high withdrawals from its platform, given the appearance of having escaped unhurt from the situation.
This scrutiny also reached a fever pitch by the end of the previous year in the wake of the multi-billion-dollar collapse of FTX, which shook the trust of investors in an increasingly volatile and unsettled crypto market.