Federal Prosecutors Subpoena Hedge Funds Over Binance


Federal prosecutors are investigating the largest crypto exchange Binance and have subpoenaed several hedge funds as part of their probe, according to a Washington Post report.

The Seattle US Attorney’s office has reportedly issued subpoenas to investment firms that interact with Binance. According to the reporthedge funds were required to provide records of their communication with the exchange.

The report noted that the subpoenas do not necessarily mean that authorities want to bring charges against the exchange; however, it is a sign of federal interest in the company’s operations.

Binance Trading Draws Regulatory Interest

Binance’s operations have attracted increasing interest from regulators amid recent events in the crypto space.

In December, reportIt emerged that US Justice Department officials considered suing Binance. The report noted that officials were divided on the course of action to take against the exchange.

meanwhile another report stated that drug cartels used the exchange led by Changpeng Zhao to launder millions of illegal proceeds.

According to the Washington Post report, Binance chief strategy officer Patrick Hillmann said that the exchange was talking to every regulator in the world. Hillmann declined to comment on whether the exchange was under any investigation in the United States.

Binance moves on

These regulatory scrutinies recently resulted in a massive FUD surrounding the exchange. The CZ-led firm processed more than $6 billion in withdrawals for seven days as doubts arose about his solvency. Binance appeared to have emerged unscathed despite current market conditions and record withdrawals from its platform.

Meanwhile, several crypto companiessuch as Celsius, Voyager, BlockFi, FTX, etc., declared bankrupt in the past year. More recently, the financial health of cryptocurrency conglomerate Digital Currency Group and its Genesis subsidiary has attracted regulatory interest.

Amid Rivals’ Struggles In 2022, Binance saying obtained 14 licenses and increased its workforce to more than 7,000 people. exchange wants expand its business in South Korea by acquiring a local crypto company, Gopax.

Most recently, Binance became the first exchange to get in the Association of Certified Sanctions Specialists (ACSS), – an organization focused on promoting sanctions compliance measures.

Disclaimer

BeInCrypto has reached out to the company or person involved in the story for an official statement on recent developments, but has yet to hear back.

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