Federal prosecutors in the United States have allegedly served subpoenas to a number of hedge funds as part of investigations into whether Binance Global Inc., the world’s largest crypto exchange, has committed money laundering offenses.
Sources familiar with the case said the US attorney’s office for the Western District of Washington in Seattle has requested documents from the subpoenaed firms about their connections with Binance.
It is unknown as of yet if the subpoenas will result in legal action being taken against Binance.
The US Justice Department is reportedly divided on whether to charge Binance and its executives for violating the Bank Secrecy Act, which necessitates financial institutions to abide by know-your-customer protocols and report any suspicious activities on their platforms.
This intensified scrutiny comes after the insolvency of the hybrid crypto exchange FTX.com.
The US Securities and Exchange Commission recently vetoed Binance’s US arm’s proposed $1 billion acquisition of the bankrupt crypto lender Voyager Digital’s assets, due to inadequate information about Binance’s ability to close the transaction.