US Federal Prosecutors Investigating US Hedge Funds’ Relationship with Binance

U.S. federal prosecutors have filed a lawsuit against American hedge funds as part of a long-running investigation into possible violations of money laundering rules. cryptocurrency stock market Binance examines his relationship with

Prosecutors Demand Contact Records of US Investment Firms with Binance

According to two people who each reviewed one of the subpoenas and spoke on condition of anonymity to discuss this confidential matter, the U.S. attorney’s office for the Western District of Washington in Seattle sent subpoenas last month urging investment companies to hand over records of their communications with Binance.

Legal experts said these previously undisclosed subpoenas did not mean authorities would press charges. Prosecutors are still discussing a possible settlement with Binance and assessing whether they have sufficient evidence to file an indictment against the company, Reuters reported last month.

Binance chief strategy officer Patrick Hillmann said in an interview that the company meets “daily with almost every regulatory body around the world” but declined to comment on the status of any investigations in the US. Justice Department spokesman Joshua Stueve also declined to comment.

Binance chief Hillmann acknowledged that the company’s first few years of rapid growth lacked in its compliance approach. Recently, however, he said that Binance has invested heavily in compliance programs, working closely with law enforcement, and developing new technologies to catch criminals on its platform.

As part of its response to increased regulatory interventions, Binance launched a campaign against Washington.

This fall, the company formed a global advisory board chaired by Max Baucus, the former Democratic senator from Montana and the Obama administration’s ambassador to China, which also includes David Plouffe, Obama’s former senior adviser. Last month, he joined the Digital Chamber of Commerce, a Washington-based crypto lobby association.

*Not investment advice.