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After Bloomberg reported that the DOJ and IRS were investigating Binance, the value of major cryptocurrencies fell across all exchanges.
The world’s largest crypto exchange Binance is reportedly subject to investigation by the US Department of Justice (DOJ) and the Internal Revenue Service (IRS). Bloomberg reported the matter on the 13th of May. According to the report, the DOJ and the IRS are probing Binance on money-laundering allegations.
Binance Faces Investigation by DOJ and IRS
Binance is known across the globe for the various crypto-related services it offers to its users. Citing reliable sources, Bloomberg said that the DOJ and IRS officials are also investigating tax offenses in addition to money laundering matters. Under the investigation, the authorities are interrogating individuals who are familiar with the exchange’s business.
Blockchain forensics Chainalysis revealed that a lot of funds involved in criminal activities flowed through Binance in 2020. Chainalysis said that among the transactions the firm examined, most of the funds used in illegal activities went through Binance.
Furthermore, Bloomberg revealed that Binance spokeswoman Jessica Jung commented on the recent happenings. Jung said in an emailed statement:
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. 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.”
Binance CEO Changpeng Zhao also reacted to the ongoing investigation in a tweet. CZ said that other than facing an investigation by the US authorities, the exchange has collaborated with law enforcement agencies to “fight bad players.”
Before now, Bloomberg had reported that the Commodity Futures Trading Commission was also investigating Binance. Like he did with the DOJ and IRS probe, Binance CEO also dismissed the news. Zhao said that the “story doesn’t have any teeth.”
Although individuals and institutions are increasingly adopting cryptocurrencies, digital assets remain an issue of concern in US officials. Over time, Bitcoin and altcoins have been used in facilitating theft, drug deals, and other illegal transactions.
Major Cryptocurrencies Decline after News on Binance Probe
After Bloomberg reported that the DOJ and IRS were investigating Binance, the value of major cryptocurrencies fell across all exchanges. Bitcoin has been declining since then. The king coin has dropped 3.69% in the last 24 hours to $49,404. Also, BTC has shed 12.49% in the last 7 days. Also, ETH, which just recently reached several record highs, has plummeted. ETH is currently down more than 8% to $3,693.
Furthermore, Binance Coin (BNB) lost over 10%. The coin’s value declined from $605 to $542. At the time of writing, BNB is down 5.47% to $571.79.
Earlier this month, BNB joined BTC and ETH as the only crypto projects that boast more than a $1 billion market cap. However, with the recent losses, the Binance coin now stands at a $97 million market value.