Prosecutors in the United States requested Binance and its CEO Changpeng “CZ” Zhao for papers pertaining to its anti-money laundering inspections and the team’s discussions on the topic.
According to reports, the Justice Department requested that Binance erase, modify, or eliminate documents from its files or transfer them outside of the United States.
Prosecutors in the United States demanded that Binance give records documenting its anti-money laundering inspections and correspondence involving the company’s CEO Changpeng “CZ” Zhao.
Reuters reported on Thursday, citing a December 2020 request, that the Justice Department ordered CZ and 12 other exchanges and partners to disclose correspondence discussing how the exchange handles criminal transactions and recruits U.S. consumers.
In addition, Binance was requested to provide data on files marked as “documents to be destroyed, changed, or deleted from Binance’s files” or “transferred from the United States.” According to the article, the prosecutors wanted 29 papers going back to 2017 about the company’s management, structure, finances, business, and compliance processes.
According to many people with knowledge of the situation, U.S. officials wanted to determine whether Binance had broken the Bank Secrecy Act. The legislation mandates that cryptocurrency exchanges register with the Treasury Department and abide by anti-money laundering standards. Act violations may result in a 10-year jail term.
In response to Reuters’ request for comment, Binance’s chief communications officer Patrick Hillmann said that authorities contacting regulated crypto businesses was “a routine procedure.” We often collaborate with agencies to resolve any issues they may have.
Thursday, CZ verified the report’s assertions on Twitter, stating that the exchange had freely turned over the information.
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