The Internal Revenue Service, IRS, have reportedly consorted with the Department of Justice to probe Binance cryptocurrency exchange services. The combined efforts of these agencies aim to fish out government officials who process an illegal transaction such as money laundering and other illegal tax doings.
While Binance is currently a high-profiled crypto exchange market, these illegal activities tend to tarnish the tech company’s reputation whereby illegal tax transactions steal its business interests. Meanwhile, they have been practicing legal corporate services for four years.
Prior to the IRS and DoJ’s current investigation, other government agencies have consented to scrutinize a large amount of revenue they have accumulated in a short period. Likewise, the US Commodity Futures Trading Commission, CFTC, has also probed Binance of recent — the crypto exchange company should not allow its users to transact illegal business with digital tokens via Binance.
The CFTC easily tracks these documented transactions because the purchased derivatives are registered products licensed under the agency — Commodity Futures Trading Commission. Binance has reportedly practiced freezing illegal users’ accounts, especially Americans who specialize in acquiring and transacting fraudulent tokens.
“We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity,” per Binance Spokesman who confirmed his company is uptight with legal obligations. “We have a strong track record of assisting law enforcement agencies around the world, including in the United States.”
According to Chainalysis’s cryptocurrency-based statistical report, Binance has successfully restricted several users — over $2.8 billion worth of suspicious crypto activity, the crypto exchange company froze $756 million since 2019.
