US federal prosecutors have reportedly issued subpoenas to several hedge funds as part of an ongoing investigation into potential money laundering violations by Binance Global Inc., according to the Washington Post.
The US attorney’s office for the Western District of Washington in Seattle is seeking records of the subpoenaed firms’ communications with Binance, according to sources familiar with the matter.
It is not yet clear if the subpoenas will lead to legal charges being brought against Binance.
Furthermore, the US Justice Department is reportedly divided on whether to charge Binance and its executives as part of its anti-money laundering investigation into the company.
The investigation may be examining whether Binance has violated the Bank Secrecy Act, which requires financial institutions to conduct proper know-your-customer protocols and report suspicious activities on their platforms.
Additionally, the increased scrutiny of the cryptocurrency industry follows the multibillion-dollar collapse of Bahamas-based exchange FTX.com.
The US Securities and Exchange Commission recently objected to Binance’s US arm’s proposed $1 billion purchase of bankrupt crypto lender Voyager Digital’s assets, citing insufficient details on Binance’s ability to close the deal.
