Binance helps the US federal bodies in criminal investigations that involve crypto money laundering & Tax evasion etc. The Justice Department has asked the Federal Bureau of Investigation and other federal agencies not to send thank-you notes to Binance for their assistance while providing inputs in such cases.
While on the other hand, the Department of Justice argues that the world’s largest cryptocurrency exchange rather has a duty and they are required by law to assist in the investigation related to illegal cryptocurrency transactions.
Compound Finance’s general counsel Jake Chervinsky while reading this commented that it was very strange that Binance is asking for thank you notes from American government officials.
According to a recent report, Crypto exchange Binance is being investigated by the Internal Revenue Service and the Justice Department, with officials mostly interested in the company involved in money laundering and tax offenses. According to a Bloomberg report, the world’s biggest digital asset exchange is facing questions from the US Department of Justice and IRS, though the nature of the investigation is not criminal.
To this Changpeng Zhao, the CEO of Binance, accused the media of misinterpreting the article because Binance has worked together with the US government to fight bad actors.
In late June, just days before the Financial Behavior Authority issued a consumer alert about the Binance subsidiary, Zhao himself posted a congratulatory letter to Binance from the UK Police Unit.
Robert Gonzalez, a detective based in California said in a report that Binance had already sent a written note and that he had only a few corrections.
Although this may seem trivial, the DOJ’s refusal to thank Binance in the U.S. indicates that the government is pursuing a growing arrogant attitude towards the crypto exchange platform.