Binance: US Department of Justice and Revenue Investigation?

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Financial voyeurism legalized on exchanges: we are starting to get used to it! The US Department of Justice and Taxation investigate Binance. The financial information of the US customers of the exchange could be exposed in front of the 2 institutions.

selective focus of gavel near metallic handcuffs on russian money

Bloomberg slaps Binance Coin

According to an article by Bloomberg, the Department of Justice and theInternal revenue service would investigate customers Us of Binance in order to fight against illegal transactions in the country.

The 2 government agencies want to obtain information that does not necessarily relate to potentially illegal acts.

This information comes from employees and customers of Binance ; the sources remain anonymous to respect the confidentiality of the investigations.

Binance publicly displays its willingness to collaborate. Its CEO, Changpeng Zhao, indicated that the exchange collaborates with the 2 institutions “to fight against bad players“.

The price of major cryptos collapsed when the article was published by Bloomberg.

The price of Bitcoin (BTC) andEther (ETH) fell by more than 3% and 5% respectively, The Binance Coin (BNB) recorded even greater losses, with a drop of more than 10%.

The course of BNB has since regained points. It is trading at $ 601 at the time of writing.

CZ, eternal innocent?

According to a March 2021 article from Bloomberg, Binance had been investigated by the CFTC.

The latter wanted to know if the customers Us of Binance traded crypto derivatives on the platform.

At the time, CZ had also stated that Binance complied with the rules in force. CFTC did not actually bring any charges against the exchange.

Crypto derivatives exchanges had reached new highs in early 2021.

During the first half of March 2021, open interest on futures contracts BTC for the first time approached $ 20 billion on the main major exchanges.

The legalization of surveys with exchanges to obtain sensitive data on their customers seems to become commonplace. The investigations are legal, but is that for all that normal? Exchanges, in particular CEXs, continue to be the open door to incursions by government agencies. Binance and other crypto exchanges are the Achilles heel of the cryptosphere. Sauce C in a recipe D: enough to give nausea and indigestion to cryptosphere purists.

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Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which seem to be far too technical.


The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.


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